India has taken another step towards becoming a major global smartphone production hub after approving a manufacturing joint venture between China’s Vivo and local company Dixon Technologies. The approval allows Vivo to proceed with a long-delayed partnership that was first announced in December 2024, marking a significant development in the country’s growing electronics manufacturing sector.
The joint venture will see Dixon acquire certain manufacturing assets from Vivo, manufacture part of the company’s smartphone orders in India, and also produce electronic products for other brands. The 51/49 stake structure, with Dixon holding the majority share, reflects a broader shift in how Chinese smartphone brands are expanding their presence in India through local partnerships.
For an industry watching how governments referee the relationship between Chinese capital and domestic manufacturing, the structure of this venture could become a template for similar arrangements across the industry. This move is seen as a way to broaden India’s smartphone manufacturing story beyond Apple, which has been at the forefront of the country’s electronics manufacturing boom.
Apple has been instrumental in turning India into a global smartphone production hub over the past few years. The company has expanded its manufacturing footprint in the country and today accounts for 57% of India’s smartphone exports by volume, according to Counterpoint Research data. Chinese brands, on the other hand, dominate India’s smartphone market sales with 72% of the market share but contribute less than 10% of exports.
The Vivo-Dixon joint venture is seen as a strategic move by both companies to tap into India’s growing demand for smartphones and electronics. For Dixon, this partnership could add annualized manufacturing volumes of about 20 million to 22 million smartphones based on Vivo’s current sales. This would be a significant boost for the company, which has been expanding its role as a manufacturing partner for both global and Chinese smartphone brands in India.
The approval of this joint venture creates a win-win situation for both players, said Tarun Pathak, research director at Counterpoint Research. The majority-Indian-owned structure provides Vivo with greater policy alignment while giving Dixon the scale to deepen local value addition and pursue exports.
This partnership is seen as a reflection of India’s push for greater local participation in electronics manufacturing. Local partnerships such as this offer Chinese brands a more stable operating model, while aligning with India’s goals for increased domestic production and export of electronics goods.
The Vivo-Dixon joint venture marks a significant development in India’s growing smartphone manufacturing sector. As the country continues to emerge as a major global production hub, it will be interesting to see how other Chinese brands follow suit and explore similar partnerships with local companies.
Source: Original article