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India on Thursday approved a manufacturing joint venture between China\u2019s Vivo and local manufacturer Dixon Technologies, a move that could mark the next phase of the country\u2019s smartphone manufacturing boom after Apple helped turn India into a global smartphone production hub.<\/p>\n
The approval allows Vivo to proceed with a long-delayed manufacturing partnership first announced<\/a> in December 2024, after New Delhi cleared the investment under investment rules introduced in 2020 that require extra government scrutiny of investment from countries sharing a land border with India \u2014 a category that includes China. The joint venture will acquire certain manufacturing assets from Vivo, manufacture part of the company\u2019s smartphone orders in India, and can also produce electronic products for other brands, according to a stock exchange filing<\/a> by Noida-based Dixon.<\/p>\n The 51\/49 venture \u2014 majority-owned by Dixon, with Vivo holding the remaining stake \u2014 reflects a broader shift in how Chinese smartphone brands are expanding manufacturing in India through local partnerships. For an industry watching how governments referee the relationship between Chinese capital and domestic manufacturing, the structure, analysts believe, could become a template for similar arrangements across the industry, helping broaden India\u2019s smartphone manufacturing story beyond Apple.<\/p>\n Over the past few years, India has emerged as a major global smartphone manufacturing hub<\/a> as Apple and its suppliers expanded iPhone production<\/a> in the country while diversifying supply chains beyond China. Government incentives have also helped<\/a> attract global electronics manufacturers, boosting the country\u2019s role in global smartphone production.<\/p>\n Apple spent years building its manufacturing footprint<\/a> in India and today accounts for 57% of the country\u2019s smartphone exports by volume, according to Counterpoint Research\u2019s data shared with TechCrunch. Chinese brands, on the other hand, dominate India\u2019s smartphone market sales with 72% of the market, but contribute less than 10% of exports, a gap that shows how much upside is still on the table if they start exporting from India the way Apple does.<\/p>\n Apple\u2019s India manufacturing expansion has largely been driven by suppliers such as Foxconn<\/a> and Tata<\/a>. Chinese smartphone brands, meanwhile, are increasingly exploring partnerships<\/a> with Indian companies after New Delhi tightened investment rules for neighboring countries<\/a> following the 2020 border clashes<\/a> with China. Several of those companies, including Oppo<\/a>, Vivo<\/a>, and Xiaomi<\/a>, have also faced tax and regulatory investigations in India in recent years, which helps explain why ceding majority control to an Indian partner is now looking like the more sustainable path forward.<\/p>\n Local partnerships such as the Dixon-Vivo venture offer Chinese brands a more stable operating model, while aligning with India\u2019s push for greater local participation in electronics manufacturing, said Tarun Pathak, research director at Counterpoint Research.<\/p>\n \u201cThe approval of this joint venture creates a win-win for both players,\u201d Pathak told TechCrunch. He added that the majority-Indian-owned structure provides Vivo with greater policy alignment while giving Dixon the scale to deepen local value addition and pursue exports.<\/p>\n Vivo has manufactured and exported smartphones<\/a> from India for years, but the approved venture marks a shift toward a majority Indian-owned manufacturing structure as the market leader deepens its footprint in the world\u2019s second-largest smartphone market. The Chinese smartphone vendor retained the top spot<\/a> in India\u2019s smartphone market with a 23% shipment share in Q1, per Counterpoint.<\/p>\n For Dixon, India\u2019s largest electronics manufacturing services company, the venture could add annualized manufacturing volumes of about 20 million to 22 million smartphones, based on Vivo\u2019s current sales, according to comments by Managing Director Atul Lall during the company\u2019s May earnings call<\/a>. That\u2019s a meaningful volume bump for a public company whose growth increasingly hinges on winning exactly these kinds of manufacturing contracts.<\/p>\n Dixon already manufactures<\/a> smartphones for Xiaomi, suggesting the Vivo venture builds on an expanding role as a manufacturing partner for both global and Chinese smartphone brands in India, and reinforces its position as one of the more reliable bets in India\u2019s electronics build-out.<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n