Lenovo targets doubling India business in three years; bets on AI and Motorola growth

Global technology giant Lenovo announced on Wednesday, January 7, 2026, an ambitious goal to double its India business over the next three years. Speaking at CES 2026, Amar Babu, President for Asia Pacific at Lenovo, stated that the growth would be spearheaded by the Motorola smartphone brand and the rapid expansion of AI-optimized infrastructure and digital services.

Babu highlighted that India is now one of Lenovo's fastest-growing markets globally, currently recording growth in excess of 20%. This success is underpinned by an “India for the world” strategy: Lenovo is now designing its mainstream servers in India and developing a significant portion of Motorola’s global smartphone software locally. “India is not just a consumption market; it is a critical talent and capability hub for our global operations,” Babu noted.

Financial Momentum and Market Impact The targets follow a stellar performance in the quarter ended September 30, 2025. Lenovo India reported a 23% year-on-year revenue surge to $1.2 billion. This growth was bolstered by market premiumization and a boost in consumer sentiment following the October 2025 GST restructuring on electronic components. Globally, Lenovo Group reached a record quarterly revenue of $20.5 billion, with AI-related products now accounting for 30% of the total revenue mix.

The AI Pivot: From “Pocket to Cloud” At CES 2026, Lenovo showcased its “Full-stack AI” portfolio, including the new Qira Personal AI system. The company’s Infrastructure Solutions Group (ISG) is seeing massive demand for AI-ready servers featuring Neptune liquid-cooling, much of which is supported by Lenovo's Indian AI Centre of Excellence, which is scaling to over 1,000 high-skilled employees.

While specific hiring numbers were not disclosed, Babu affirmed that the company is “investing ahead of the curve,” adding resources and infrastructure to maintain its momentum in one of the world's most attractive talent markets.

Summary

Lenovo plans to double its India business over the next three years, driven by the explosive growth of the Motorola smartphone brand and “high double-digit” gains in infrastructure and services. Announced at CES 2026, the strategy pivots on “Agentic AI” and an “India for the world” model, where the country serves as a global R&D and design hub for servers and smartphone software.

Frequently Asked Questions (FAQs)

Q1: What is the “India for the world” strategy? 

It refers to Lenovo’s shift toward using India as a global R&D base. For example, mainstream servers and Motorola’s software are now designed and developed in India for markets worldwide.

Q2: What specific AI technology is driving this growth? 

The core drivers are AI PCs (which now make up 33% of Lenovo shipments), the Qira Personal AI assistant, and AI-optimized servers designed for high-density workloads.

Q3: How is Motorola performing in India? 

Motorola is a primary growth engine; its revenue in India has more than doubled over the past two years, with a focus on the mid-to-premium smartphone segments.

Q4: Why did Lenovo India's revenue increase by 23%? 

Growth was driven by rapid enterprise digitization, a shift toward premium devices, and improved buying sentiment following GST stimulus implemented in late 2025.

Q5: Is Lenovo India going to launch an IPO? 

While the parent Lenovo Group (HKSE: 992) is listed in Hong Kong, the strong $1.2 billion quarterly revenue has led to market speculation regarding a future local listing for Lenovo India, though no official plans have been announced.