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China isn’t the only country where Apple makes iPhones. It has started producing some models in India where the company had decided to localize production in order to prevent getting hit by import taxes. The company is also using that production capacity to meet demand in other regions. It has reportedly started shipping iPhones made in India to European markets.

Apple had lined up Wistron’s Indian division to start assembling the iPhone back in 2016. It has now become the first of Apple’s contract manufacturers to export the iPhones form its factory in Bengaluru. A report out of India adds that iPhone 6s and iPhone 7 models are now being exported in quantities of under 100,000 units per month. It adds that exports to European markets began a few months ago.

There’s growing speculation now that Apple will shift more production to the country as it looks to reduce its reliance on manufacturers in China due to the ongoing trade spat between the United States and China. It’s expected that even Apple’s higher-end models could be produced locally in partnership with Foxconn. A significant number of those units will also be exported to other markets.

Some market watchers suggest that scaling up manufacturing operations in the country would also enable the company to meet local sourcing norms which it’s required to do before opening its own retail stores in the country.

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