Vivo-Dixon Deal Opens a New Chapter for India’s Smartphone Manufacturing Industry
India has approved a smartphone manufacturing joint venture between Chinese technology company Vivo and domestic electronics producer Dixon Technologies, signalling a significant development in the country’s ambitions to become a major global electronics production centre.
The partnership could expand India’s smartphone manufacturing success beyond Apple, whose growing local supply chain has played a central role in turning the country into an important production and export hub.
Long-delayed partnership receives approval
The Vivo-Dixon partnership was initially announced in December 2024 but required additional regulatory clearance before it could move forward.
India introduced stricter investment rules in 2020 for companies based in countries that share a land border with India. The policy, which includes investments linked to China, requires companies to obtain government approval before completing certain transactions.
With the necessary clearance now secured, Dixon and Vivo can proceed with incorporating the new manufacturing company and completing the remaining conditions connected to the agreement.
The venture is expected to acquire selected manufacturing assets from Vivo and take responsibility for part of the smartphone maker’s production requirements in India. It will also be permitted to manufacture smartphones and other electronic products for additional brands.
Dixon will retain majority control
Under the agreed ownership structure, Dixon will control 51% of the new company, while Vivo Mobile India will hold the remaining 49%.
Neither company will acquire a direct ownership interest in the other. The joint venture will instead operate as a separate original equipment manufacturing business serving Vivo and potentially other electronics brands.
The majority-Indian-owned structure could become increasingly important for Chinese technology companies seeking to expand their manufacturing operations in India. It allows international brands to benefit from the scale and local knowledge of Indian manufacturers while meeting the country’s policy preference for greater domestic participation.
Similar partnerships could eventually provide a model for other Chinese smartphone companies facing investment restrictions or regulatory uncertainty in the Indian market.
Apple established the manufacturing benchmark
India’s emergence as a smartphone production hub has largely been driven by Apple and its manufacturing partners, including Foxconn and Tata.
Government incentives, supply-chain diversification and rising investment in electronics manufacturing have helped Apple move a growing share of iPhone assembly away from China and into India.
Apple currently accounts for 57% of India’s smartphone exports by volume, according to Counterpoint Research data shared with TechCrunch.
The company’s expansion has demonstrated that India can support large-scale smartphone production for both domestic consumers and international markets. It has also encouraged additional component manufacturers and contract manufacturing companies to invest in local facilities.
Chinese brands dominate sales but trail in exports
Although Apple has become the leading force in India’s smartphone exports, Chinese companies continue to dominate the country’s domestic handset market.
Chinese brands collectively represent 72% of smartphone sales in India. However, they account for less than 10% of the country’s smartphone exports.
This gap represents a major opportunity. Should brands such as Vivo, Oppo and Xiaomi begin using India as a larger export base, the country could strengthen its role in global smartphone supply chains while reducing the industry’s dependence on manufacturing facilities in China.
The Vivo-Dixon venture may therefore become more than a domestic production agreement. By increasing manufacturing capacity and local value addition, the partnership could eventually support a stronger export strategy for Vivo.
Regulatory pressure encourages local partnerships
Chinese smartphone companies have operated in India for years, but their business environment has become more complicated since the 2020 border clashes between India and China.
New Delhi subsequently increased its scrutiny of Chinese investment. Vivo, Oppo and Xiaomi have also faced tax or regulatory investigations in India, creating additional uncertainty for their local operations.
Partnering with a majority-Indian-owned manufacturer may provide these companies with a more stable route for expanding production while remaining aligned with government policies.
Tarun Pathak, research director at Counterpoint Research, described the agreement as beneficial to both companies.
“The approval of this joint venture creates a win-win for both players.”
The Indian-majority structure gives Vivo stronger policy alignment, while Dixon gains additional scale, opportunities to increase local value addition and the potential to pursue smartphone exports.
Vivo strengthens its position in India
Vivo has already manufactured and exported smartphones from India. However, the new venture marks a shift towards a production structure controlled by an Indian partner.
The company remains one of the country’s leading smartphone vendors. According to Counterpoint data cited by TechCrunch, Vivo retained first place in India with a 23% shipment share in Q1.
India is considered the world’s second-largest smartphone market, making it strategically important for Vivo’s long-term growth. The partnership with Dixon could allow the company to increase production while reducing some of the regulatory and operational risks associated with managing manufacturing independently.
Dixon could gain millions of additional orders
For Dixon Technologies, the agreement represents a substantial expansion opportunity.
Managing Director Atul Lall said during the company’s May earnings call that the Vivo partnership could eventually contribute annualised manufacturing volumes of approximately 20 million to 22 million smartphones, based on Vivo’s current sales.
Dixon already manufactures smartphones for Xiaomi and several other brands. Adding Vivo as a major long-term partner would further strengthen its position as one of India’s largest electronics manufacturing services companies.
The company reported that it produced approximately 33 million smartphones during the 2026 financial year, including exports. The additional Vivo business could therefore represent a considerable increase in its overall production capacity.
A wider shift in India’s electronics sector
The Vivo-Dixon deal illustrates how India’s smartphone manufacturing strategy is evolving.
Apple’s supply chain initially demonstrated India’s potential as an international production and export base. The next stage may be defined by partnerships between Indian manufacturers and Chinese brands that already hold strong positions in the domestic market.
For India, these ventures could support investment, employment, exports and greater domestic involvement in electronics manufacturing. For Chinese smartphone companies, they offer a more policy-aligned and potentially sustainable way to expand.
The success of the Vivo-Dixon partnership will depend on how quickly the new company begins operating, how much production Vivo transfers to it and whether the venture develops into an export platform. Nevertheless, its approval marks an important step in broadening India’s smartphone manufacturing growth beyond Apple.
Online references
- Dixon Technologies’ stock-exchange announcement and joint-venture terms.
- Government approval and ownership details reported by Reuters.
- Counterpoint market and export data reported by TechCrunch.
- Dixon Technologies Q4 FY26 earnings-call transcript.
0 Comments