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After Apple, India’s smartphone manufacturing boom enters new phase with Vivo JV
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India on Thursday approved a manufacturing joint venture between China's Vivo and local manufacturer Dixon Technologies, signaling a new phase in the country's smartphone manufacturing expansion. The approval allows Vivo to proceed with a long-delayed partnership first announced in December 2024, after New Delhi cleared the investment under rules introduced in 2020 that require extra scrutiny of investments from countries sharing a land border with India, including China. The joint venture will acquire certain manufacturing assets from Vivo, produce part of its smartphone orders, and can also make electronic products for other brands, according to a stock exchange filing by Dixon.
The 51/49 venture, majority-owned by Dixon with Vivo holding the remaining stake, 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, analysts believe this structure could become a template for similar arrangements. This development comes as India has emerged as a major global smartphone manufacturing hub, largely driven by Apple and its suppliers expanding iPhone production while diversifying supply chains beyond China.
Apple currently accounts for 57% of India's smartphone exports by volume, according to Counterpoint Research data shared with TechCrunch. In contrast, Chinese brands dominate India's smartphone market with 72% of sales but contribute less than 10% of exports, highlighting significant untapped potential. Vivo retained the top spot in India's smartphone market with a 23% shipment share in the first quarter of 2025, according to Counterpoint.
The joint venture marks a shift for Vivo, which has manufactured and exported smartphones from India for years, toward a majority Indian-owned manufacturing structure. Chinese brands have faced tax and regulatory investigations in India following the 2020 border clashes with China, making local partnerships a more sustainable path forward. For Dixon, India's largest electronics manufacturing services company, the venture could add annualized manufacturing volumes of about 20 million to 22 million smartphones, based on Vivo's current sales, according to comments by Managing Director Atul Lall during a May earnings call.
Tarun Pathak, research director at Counterpoint Research, described the approval as a win-win for both players. "The majority-Indian-owned structure provides Vivo with greater policy alignment while giving Dixon the scale to deepen local value addition and pursue exports," Pathak told TechCrunch. The partnership aligns with India's push for greater local participation in electronics manufacturing, offering Chinese brands a more stable operating model.
Looking ahead, the joint venture could help broaden India's smartphone manufacturing story beyond Apple, enabling Chinese brands to increase exports from the country. Government incentives and the new partnership template may attract more such arrangements, further boosting India's role in global smartphone production. With Dixon's manufacturing capabilities and Vivo's market leadership, the venture is poised to contribute significantly to India's electronics export ambitions.
