(Yicai) Aug. 22 -- Honor rejected a media report that said the Chinese smartphone maker has set up a subsidiary in India, adding that it also has no plans to do so.

Honor does business in India through a distributor, and has no plans for technology and product or service management transfers, the Shenzhen-based company said today.

Reuters reported yesterday that Honor will relaunch in the Indian market through a licensing deal with a local firm, and it aims to start local production 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.

Honor Tech is not a partner and is not associated with Honor, the Chinese firm 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 Global is Honor’s distributor and is authorized to import, distribute, and promote its products in the country, according to the firm. PSAV Global is not allowed to use the Honor brand in any form that is beyond the authority of a distributor, it added.

Editor: Martin Kadiev