Impact of STQC Certification on Chinese CCTV Brands in India

New Certification Rules Affecting Chinese CCTV Brands

Starting April 1, the implementation of STQC certification in India may significantly impact Chinese CCTV brands such as Hikvision and Dahua. The inability to secure certification for products utilizing Chinese chipsets effectively restricts their market presence, providing a substantial advantage to Indian CCTV manufacturers.

Chinese Brands Facing Major Setbacks

India is poised to deliver another significant blow to China. Brands like Hikvision, Dahua, and TP-Link, which sell CCTV systems in India, are likely to face severe challenges. The new certification requirements under the Standardization Testing and Quality Certification framework will necessitate STQC approval for any CCTV product sold in the country.

According to reports from industry executives, officials are reportedly denying certification to Chinese companies and any devices using Chinese chipsets. The absence of clearance translates to no market access, effectively functioning as a ban.

Concerns Over Surveillance Hardware

The apprehension surrounding Chinese manufacturers' surveillance hardware extends beyond trade issues; it raises concerns about whether these devices could allow unauthorized remote access to sensitive footage. Under the new regulations, manufacturers must disclose the country of origin for specific components, particularly system-on-chip, and submit devices for vulnerability testing. When the Ministry of Electronics and Information Technology introduced essential requirements norms in April 2024, companies were given a two-year transition window, which is now closing.

Rise of Indian Manufacturers

Chinese brands had established a strong foothold in India's CCTV market, accounting for nearly one-third of total sales until last year. However, this dominance is rapidly diminishing. Indian manufacturers like CP Plus, Qubo, Prama, Matrix, and Sparsh have swiftly adapted by restructuring their supply chains around Taiwanese chipsets and localizing their firmware. According to Counterpoint Research, the results are evident, with Indian players controlling over 80% of the market by February.

Under the new system, more than 500 CCTV models have already received certification, indicating that the framework process is underway and progressing. Companies that prepared in advance are in a favorable position, while those that did not or relied on Chinese components will effectively be sidelined starting April 1.