Finnish smartphone manufacturer HMD has officially entered a new phase of its regional strategy by integrating localized artificial intelligence directly into its hardware. The company recently launched the Vibe 2 5G, a mid-range Android device that comes pre-loaded with the Indus chatbot, an AI assistant developed by the Indian startup Sarvam. This rollout marks a significant move to increase the accessibility of generative AI for users in India, particularly those who do not speak English fluently.
The partnership, which was initially introduced during the India AI summit held in New Delhi in February, represents an attempt by HMD to differentiate its products in one of the world’s most competitive mobile markets. By focusing on language-specific utility, the company is positioning its hardware as a practical tool for a broader demographic, moving beyond the standard specifications that define much of the mid-range smartphone sector.
Bridging the Language Gap in Mobile AI
A primary challenge for the widespread adoption of artificial intelligence in diverse markets like India is the historical reliance on English-centric models. The Indus chatbot, which powers the new HMD integration, is designed to address this by supporting 22 Indic languages. This capability is intended to provide a more inclusive experience for millions of users who are currently excluded from the global AI boom due to language barriers.
Technically, the Indus app is supported by a 105-billion-parameter model developed by Sarvam. One of its standout features is the ability to perform mid-sentence code-switching—the capacity to fluidly navigate between languages, such as mixing Hindi and English within a single query. This functionality is intended to allow the assistant to better interpret the intent and context of a user’s request, making the AI more conversational and less mechanical.
Despite these advancements, the current implementation remains in its early stages. According to company disclosures, the application does not yet support offline usage, nor does it feature a dedicated hardware shortcut to trigger the assistant directly from the device’s interface. These limitations suggest that both HMD and Sarvam are treating this initial release as a testing ground to gather user feedback and refine the integration for future iterations.
Strategic Positioning in a Crowded Market
For HMD, the decision to bundle localized software is a calculated maneuver aimed at gaining traction in India. Data from the analyst firm IDC indicates that while HMD maintained a 4% share of India’s feature phone market in 2025, its presence in the smartphone sector has been negligible, with the brand not appearing in the top 15 smartphone manufacturers. By pre-loading a utility-focused AI, HMD hopes to build brand loyalty and differentiate its Vibe series of smartphones from competitors.
Ravi Kunwar, HMD’s CEO and Vice President for India and APAC, described the rollout as a staged approach. In a recent interview, Kunwar stated, “With this partnership, the first thing we want to do is get the Indus app to consumers. Once they start using it, we will move to phase two to focus on driving more traction and stickiness. Right now, by pre-loading the app, we want to be more accessible to users.”
The Vibe 2 5G, which is equipped with a 6,000mAh battery, is currently priced at ₹10,999 (approximately $114). HMD has indicated that the chatbot integration will extend across the Vibe series of smartphones. The company is expected to release a feature phone with Sarvam AI integration in the near future. Industry analysts are closely watching this development, as the integration of AI into lower-cost feature phones could potentially reach a much larger segment of the Indian population than smartphone-only initiatives.
The Road Ahead for Localized AI
The collaboration between HMD and Sarvam underscores a growing trend where global hardware manufacturers must adapt their software ecosystems to suit the specific linguistic and cultural needs of emerging markets. While the global AI landscape is currently dominated by large-scale models from companies like OpenAI, Google, and Meta, the success of regional players will likely depend on their ability to provide high-quality, localized experiences that these larger entities may not prioritize.
As the partnership progresses, the focus for both HMD and Sarvam will be on increasing user engagement and improving the performance of the Indus app. The shift from simply pre-loading an app to creating a deeply integrated, highly functional AI assistant will be the next major hurdle. For users, the value will be determined by how effectively the model handles real-world queries in their native languages and how well the software performs on mid-range hardware.
The next phase of this project will likely involve data-gathering on user behavior and query patterns, which will inform subsequent updates to the Indus chatbot. As HMD prepares to expand this integration to its feature phone lineup, the company is expected to provide further updates on software capabilities and regional availability. We will continue to monitor this story as more devices enter the market and user feedback becomes available.
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