After Apple, India's smartphone boom enters new Vivo JV phase
India approved a manufacturing joint venture between China's Vivo and Dixon Technologies on Thursday—the next chapter after Apple helped build India's smartphone manufacturing boom. The Dixon-led 51/49 structure could become a template for Chinese brands expanding manufacturing through local Indian partners.
New Delhi cleared the long-delayed deal under 2020 investment rules that require extra scrutiny for countries sharing a land border with India, including China. The move widens India's production story beyond Apple, whose suppliers helped turn the country into a global smartphone hub. For more on how hardware shifts reshape global tech, explore our Future Tech & AI Wonders coverage.
Key Takeaways
- India approved the Vivo–Dixon manufacturing JV on Thursday under 2020 border-nation investment rules.
- Dixon will hold 51% and Vivo 49%; the entity can build Vivo phones and products for other brands.
- Analysts say the structure may guide other Chinese smartphone makers seeking Indian partnerships.
- Apple accounts for 57% of India's smartphone exports, while Chinese brands hold 72% of sales but under 10% of exports.
- Vivo led India's market with a 23% Q1 shipment share; Dixon could add 20–22 million units annually.
What did India approve and why does it matter?
India on Thursday approved a manufacturing joint venture between China's Vivo and local manufacturer Dixon Technologies. The decision could mark the next phase of the country's smartphone manufacturing boom after Apple helped turn India into a global smartphone production hub, according to TechCrunch.
The approval allows Vivo to proceed with a partnership first announced in December 2024. The joint venture will acquire certain manufacturing assets from Vivo, manufacture part of the company's smartphone orders in India, and can also produce electronic products for other brands, per a stock exchange filing by Noida-based Dixon.
Why was the Vivo-Dixon deal held up?
New Delhi cleared the investment under rules introduced in 2020 that require extra government scrutiny of investment from countries sharing a land border with India. That category includes China, and several Chinese smartphone brands faced tighter oversight after the 2020 border clashes.
Companies including Oppo, Vivo, and Xiaomi have also faced tax and regulatory investigations in India in recent years. Ceding majority control to an Indian partner is increasingly seen as a more sustainable path forward for Chinese brands operating in the market.
How does this compare to Apple's India manufacturing push?
Over the past few years, India has emerged as a major global smartphone manufacturing hub as Apple and its suppliers expanded iPhone production while diversifying supply chains beyond China. Government incentives have also helped attract global electronics manufacturers.
Apple accounts for 57% of the country's smartphone exports by volume, according to Counterpoint Research data shared with TechCrunch. Chinese brands dominate India's smartphone market sales with 72% share, but contribute less than 10% of exports—a gap that shows upside if they export from India the way Apple does.
What could the JV mean for Vivo and Dixon?
The 51/49 venture reflects a broader shift in how Chinese smartphone brands expand manufacturing in India through local partnerships. Tarun Pathak, research director at Counterpoint Research, told TechCrunch the majority-Indian-owned structure gives Vivo greater policy alignment while letting Dixon deepen local value addition and pursue exports.
Vivo has manufactured and exported smartphones from India for years, but the approved venture marks a shift toward majority Indian-owned manufacturing as the market leader deepens its footprint in the world's second-largest smartphone market. Vivo retained the top spot with a 23% shipment share in Q1, per Counterpoint.
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 the company's May earnings call. Dixon already manufactures smartphones for Xiaomi, reinforcing its role as a manufacturing partner for Chinese brands in India.