After Apple, Indias smartphone manufacturing boom enters new phase with Vivo JV

Published: Friday, July 10, 2026 at 4:36 am

India's burgeoning smartphone manufacturing sector is entering a new era with the government's approval of a joint venture between Chinese firm Vivo and local manufacturer Dixon Technologies. This development signifies a potential next phase for India's ambition to become a global smartphone production hub, building on the significant strides made by Apple and its suppliers.

The approved partnership, initially announced in late 2024, faced scrutiny under investment rules implemented in 2020 that require enhanced government review for investments from countries sharing a land border with India, including China. The joint venture will see Vivo transfer certain manufacturing assets to the new entity, which will then produce a portion of Vivo's smartphone orders within India. Furthermore, the venture will have the capacity to manufacture electronic products for other brands.

Structured as a 51/49 venture with Dixon Technologies holding the majority stake, this arrangement reflects a growing trend among Chinese smartphone brands to expand their manufacturing operations in India through local collaborations. Industry observers suggest this model could serve as a blueprint for future partnerships, diversifying India's manufacturing narrative beyond its current reliance on Apple.

While Apple has been instrumental in establishing India as a major manufacturing center, accounting for a substantial share of the country's smartphone exports, Chinese brands currently dominate the domestic market sales. This presents a significant opportunity for these brands to leverage their local manufacturing capabilities for export, mirroring Apple's success. The shift towards local partnerships is also influenced by India's tightened investment regulations following border disputes with China, and the ongoing tax and regulatory investigations faced by some Chinese manufacturers.

Experts believe that these local collaborations offer Chinese brands a more stable operational framework while aligning with India's objective of increasing local participation in electronics manufacturing. The majority-Indian-owned structure is seen as beneficial for Vivo, ensuring greater policy alignment, and for Dixon, providing the scale to enhance local value addition and pursue export opportunities.

For Dixon, India's largest electronics manufacturing services company, this venture is projected to add substantial annual manufacturing volumes, potentially between 20 to 22 million smartphones, based on Vivo's current sales. This expansion is crucial for Dixon, as its growth is increasingly tied to securing such manufacturing contracts. The company already produces smartphones for Xiaomi, indicating a growing role as a manufacturing partner for both international and Chinese brands in India, solidifying its position in the country's expanding electronics industry.

BNN's Perspective:
The approval of the Vivo-Dixon joint venture represents a pragmatic step forward for India's manufacturing ambitions. It demonstrates a balanced approach, allowing for foreign investment and technological transfer while ensuring significant local control and alignment with national industrial policy. This model, if successful, could foster a more robust and diversified electronics manufacturing ecosystem, benefiting both domestic companies and international players seeking to tap into India's vast market and growing export potential. The emphasis on local partnerships addresses geopolitical sensitivities and promotes greater value addition within India, a positive development for the nation's economic growth.

Tags: India smartphone manufacturing, Vivo, Dixon Technologies, joint venture, Apple, Chinese brands, electronics manufacturing, export hub, local partnerships, investment rules, supply chain diversification, Counterpoint Research, Dixon Managing Director, Atul Lall, policy alignment, value addition, market share, shipment share, Q1, Noida-based Dixon

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