Local Indian manufacturer Micromax has overtaken Samsung to become the largest seller of smartphones in India, thanks in large to the popularity of its budget-priced handsets with consumers upgrading from feature phones.

In Q4 of 2014, Micromax phones represented 22 per cent of the total smartphone shipments in India, while Samsung dropped to a 20 per cent market share. India is the third largest smartphone market in the world, and continues to show rapid growth as smartphone penetration increases.

21.6m units shipped in Q4 2014, with the India market showing an annual growth of 90 per cent. While Samsung has dropped to second place, local vendors Karbonn and Lava are competing for third and fourth spots.

The figures, which come from independent analysis firm Canalys, point towards the success of Micromaxs budget phones and its flagship line, with products like the Canvas Nitro and Canvas Hue which are targeted at the INR9,000 (£96) to INR12,000 segment. In Q4, 23 per cent of Indian smartphone shipments were priced under INR6,000, while 41 per cent were priced between INR6,000 and INR12,000.

“Catering to local market preferences will become increasingly important,” said Rushabh Doshi, analyst at Canalys. “Micromax has been quicker than its competitors to improve the appeal of devices, for example, by including a wide variety of local languages on its Unite phones. Lava, another domestic vendor, has launched devices that cater to the preference for greater battery life – in this case a couple of days. But vital to success is selling these handsets at low price points to appeal to the bulging mid-level income market in India.”