Xiaomi set its sights on regaining its foothold in India by focusing on 5G smartphones and a more streamlined portfolio following a period of decline in the market due to regulatory issues and the launch of too many products.

The company’s president of India Muralikrishnan B told Bloomberg it will launch fewer smartphones, focus on customer experience and target sales through retail stores, in line with approaches it took in the past to grow its business in the country.

Xiaomi India’s CMO Anuj Sharma confirmed the plan in a series of online posts previously referred to as tweets, explaining the vendor is “correcting some of the mistakes we’ve made” and had already made the portfolio leaner ahead of a “pending revolution on 5G”.

Strategy Analytics figures placed Xiaomi as India’s market leader in terms of shipments in Q1 2022, around the time it was hit with a probe by the country’s Enforcement Directorate (ED) which alleged it’s local business illegally remitted INR55.5 billion ($716.4 million) to a trio of overseas entities.

Last week, The Economic Times (ET) also reported the country is also pursuing the company for several billion rupees in missed customs duty and goods and services tax payments.

Xiaomi’s regulatory woes, increasing competition and a growing product line which Muralikrishnan stated confused customers, resulted in it slipping to fourth place in Q1 shipment figures compiled by IDC, behind Samsung, Oppo and Vivo.

Muralikrishnan told Bloomberg Xiaomi India is now looking towards a gradual recovery while deepening ties with local partners.

Sharma noted a new 5G device is scheduled to launch in August priced at between $200 and $250.