India on Thursday approved a joint manufacturing venture between China’s Vivo and local manufacturer Dixon Technologies. This could mark the next phase of the country’s smartphone manufacturing boom after Apple made India a global smartphone manufacturing hub.
The approval allows Vivo to proceed with its long-delayed manufacturing partnership first announced In December 2024, New Delhi will require additional government scrutiny of investments from countries sharing a land border with India after clearing investments under the 2020 investment rules — a category that includes China. The joint venture will acquire certain manufacturing assets from Vivo, produce a portion of the company’s smartphone orders in India, and may also produce electronic products for other brands. stock documents By Noida-based Dixon.
The 51/49 venture — majority owned by Dixon, with the remainder owned by Vivo — reflects a broader shift in how Chinese smartphone brands are expanding their manufacturing in India through local partnerships. For an industry watching how governments assess the relationship between Chinese capital and domestic manufacturing, analysts say the structure could become a template for similar arrangements in the industry and help expand India’s smartphone-making story beyond Apple.
Over the past few years, India has emerged as one a major global smartphone manufacturing hub Like Apple and its suppliers Expanded iPhone production in the country while diversifying its supply chains outside of China. Government incentives also helped attracting global electronics manufacturers, increasing the country’s role in global smartphone production.
apple spent years building up his production tracks in India and today accounts for 57% of the country’s smartphone exports by volume, according to data shared by Counterpoint Research with TechCrunch. On the other hand, Chinese brands dominate India’s smartphone market with 72% market share but less than 10% of exports, which shows how much upside is on the table if they start exporting from India like Apple has done.
Apple’s manufacturing expansion in India has been largely driven by suppliers such as Foxconn and Tata. Chinese smartphone brands, meanwhile is increasingly exploring partnerships With Indian companies after New Delhi tightened investment rules for neighboring countries followed by 2020 border clashes with China. Including several companies Oppo, Vivoand Xiaomihave also faced tax and regulatory scrutiny in India in recent years, which helps explain why giving majority control to an Indian partner is now seen as a more sustainable way forward.
Tarun Pathak, director of research at Counterpoint Research, said local partnerships such as the Dixon-Vivo venture offer Chinese brands a more stable operating model while encouraging more local involvement in Indian electronics manufacturing.
“The approval of this joint venture creates a win-win for both players,” Pathak told TechCrunch. He added that the majority Indian-owned structure provides Vivo with greater policy alignment while also giving Dixon the scale to add local value and pursue exports.
i live you manufactures and exports smartphones It’s been years out of India, but the established venture marks a shift towards a mostly India-owned manufacturing structure as the market leader deepens its footprint in the world’s second-largest smartphone market. Chinese smartphone vendor maintained a high level India’s smartphone market with a 23% share in the first quarter, according to Counterpoint.
For Dixon, India’s largest electronics manufacturing services company, the venture could increase annual production to about 20 million to 22 million based on Vivo’s current sales. earnings call. That’s significant volume growth for a public company whose growth has increasingly depended on winning precisely these types of manufacturing contracts.
Dixon is already producing The smartphones for Xiaomi show the Vivo venture building on its expanding role in India as a manufacturing partner for both global and Chinese smartphone brands, strengthening India’s position as one of the more reliable bets in electronics manufacturing.
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