India Approves Vivo-Dixon Venture to Expand Smartphone Manufacturing

India has approved a manufacturing joint venture between Chinese smartphone maker Vivo and local electronics manufacturer Dixon Technologies. This move could signal the next stage of the country’s smartphone manufacturing growth, following Apple’s role in establishing India as a global production hub.

The approval clears a manufacturing partnership first announced in December 2024 under India’s 2020 investment rules, which require additional government scrutiny of investments from neighbouring countries, including China. The joint venture will be majority-owned by Dixon with a 51% stake, while Vivo will hold the remaining 49%.

A new manufacturing model for Chinese smartphone brands

Under the agreement, the venture will acquire selected manufacturing assets from Vivo, produce part of Vivo’s smartphone orders in India, and manufacture electronic products for other brands. Industry analysts believe the structure could become a template for other Chinese smartphone makers looking to expand manufacturing in India while complying with the country’s investment regulations.

India has rapidly become a global smartphone manufacturing centre over the past few years as Apple and its suppliers have expanded iPhone production in the country, supported by government incentives to strengthen domestic electronics manufacturing. According to Counterpoint Research, Apple now accounts for 57% of India’s smartphone exports by volume.

Chinese brands, however, continue to dominate India’s domestic smartphone market with a combined 72% market share but contribute less than 10% of smartphone exports. Analysts say this leaves considerable room for growth if companies such as Vivo, Oppo and Xiaomi increase exports from India in the same way Apple has done.

Policy changes reshape investment strategy.

Apple’s expansion has been driven largely through manufacturing partners such as Foxconn and Tata. Chinese smartphone companies, meanwhile, have increasingly turned to partnerships with Indian firms after New Delhi tightened foreign investment rules following the 2020 border clashes with China. Several Chinese brands have also faced tax and regulatory investigations in recent years, making majority Indian-owned ventures a more sustainable operating model.

Tarun Pathak, Research Director at Counterpoint Research, described the approval as a win-win arrangement, saying the structure gives Vivo greater policy alignment while allowing Dixon to increase local value addition and strengthen its export ambitions.

Although Vivo has manufactured and exported smartphones from India for years, the new venture marks a shift towards a majority Indian-owned production model. Vivo remained India’s leading smartphone brand in the first quarter with a 23% shipment share, according to Counterpoint.

Dixon expands its manufacturing footprint

For Dixon Technologies, India’s largest electronics manufacturing services company, the partnership is expected to add annual smartphone production volumes of around 20 million to 22 million, based on Vivo’s current sales. Managing Director Atul Lall previously said the additional volumes would represent a significant boost to the company’s manufacturing business.

Dixon already manufactures smartphones for Xiaomi, and the Vivo partnership further strengthens its position as a key manufacturing partner for both global and Chinese smartphone brands. The venture also reinforces India’s ambition to become one of the world’s leading electronics manufacturing destinations by encouraging greater local participation alongside international investment.