KOLKATA: After televisions, Sony Corp plans to assemble its Xperia smartphones in India and manufacture a couple of sub-. `10,000 models, specifically designed for the local market. The company is in talks with Taiwan's top contract manufacturer Foxconn to assemble its smartphones in India and the first batch is likely to roll out this calendar year, three senior industry executives said.The Japanese consumer electronics major is finalising a new strategy for the Indian market , which is its fourth largest after the US, China and Japan. The plan includes increasing revenue by boosting mobile phone sales, with the country poised to become the world's second largest smartphone market by 2017.Sony has globally decided to vacate the entrylevel smartphone segment, but it has realised that it needs to have a couple of handsets in emerging markets since that segment accounts for more than 70% of industry sales.“Sony officials have informed us that very soon they would commence assembling of smartphones in India due to duty benefits from local manufacturing and will also launch one or two models in the entry segment, specifically for India without which it might be difficult for them to gain share,“ the chief executive officer of a leading cellphone retail chain said, requesting anonymity .Local assembling and manufacturing of smartphones provide the makers duty benefit of 6% to 6.5%, which is aimed at encouraging the government's Make in India initiative.A Sony India spokesperson said the company does not comment on speculation. In response to an email, Foxconn Technology Group said it has a policy of not commenting on any matters related to current or potential customers and products.Sony India had last month started manufacturing its Bravia televisions in India at Foxconn's Chennai plant and its managing director, Kenichiro Hibi, had told ET that Sony headquarters was evaluating manufacturing of smartphones in India as well.The TV and smartphone businesses contribute equally to Sony India's revenue at 40% each.Once smartphone production goes on stream, Sony will join the ranks of HTC, Xiaomi and Lenovo which recently started local production in India, apart from Samsung which manufactures its entire line up of smartphones in India.Foxconn manufactures Sony smartphones in China for global supplies.As per latest numbers from Hong Kong-based market tracker Counterpoint Research, Sony had a 2.6% volume and 4% value share of India's smartphone market in the April-June quarter. Market leader Samsung had a 24.5% share. Various studies have indicated that Sony's market share had progressively come down in India after it vacated the sub-Rs 10,000 price band last year.Counterpoint Research senior analyst Tarun Pathak said Sony's volume in India is still not big to give a significant cost competitiveness by local manufacturing, hence contract manufacturing makes sense.“However, Sony needs to develop a few hero models within portfolio to get a real advantage,“ he said, adding Sony's smartphone performance in India has been flat quarter on quarter.