By Kate Yuan

(JW Insights) Aug 23 -- Chinese smartphone maker Honor denied reports that the company has set up a subsidiary in India, adding it also has no plans to do so, Yicai Global reported on August 22.

Honor has been operating in India through distributors and there is no plan for any technology transfers (including but not limited to software, hardware, product, and service management transfers), the company said.

Reuters reported on August 21 that Honor will relaunch in India through a licensing deal with a local company and is aiming to start local manufacturing by early next year. “Honor's comeback is underpinned by a licensing deal with a newly formed Gurugram-based firm Honor Tech for an undisclosed "agreed-upon cost" tied to the transfer of technology and hardware,” the report said.

On August 21, Economic Times of India reported that Honor Tech, led by former CEO of Realme India Madhav Sheth, plans to invest INR10 billion (approximately $120.4 million) in India to conduct business operations for Honor through a licensing agreement. India will have a fully-owned company to sell smartphones in the market, the report said.

Honor officially withdrew from the Indian market in 2020, a short time after Huawei Technologies sold the then budget brand to a Chinese consortium. Since then the company has relied on Noida-based PSAV Global Tech Private to distribute its products in the country.

PSAV, as Honor's distributor in India, is authorized to import and distribute Honor products in India and engage in related promotion and marketing activities, but they are not allowed to use Honor's brand in any form that exceeds the distributor's authority. India's HONOR Tech is not Honor's partner and has no affiliation with Honor, according to Honor.