NEW DELHI: At least one in four smartphones made in India are now produced by local contract manufacturers, signaling a quiet but important shift in the country’s electronics ecosystem.The rise was led by Dixon Technologies and Bhagwati Products, with Dixon emerging as the country’s largest device maker, overtaking Samsung Electronics in overall production volumes in 2025.Dixon Technologies topped the EMS (Electronics Manufacturing Services) rankings with a 19% share, achieving an 89% jump in production.The growth was driven by higher orders from brands such as Motorola, Realme and Xiaomi, reflecting a broader trend by global companies towards outsourced manufacturing.According to data from Counterpoint, Foxconn followed with a 16% share (up from 12% in 2024), largely driven by export-related shipments linked to Apple. Samsung’s share, despite its size, fell to 18% (from 20% in 2024) with only modest gains in export.Bhagwati Products, a joint venture between Micromax Informatics and Huaqin Technologies, a leading Chinese OEM, broke into the top five manufacturers with a 9% share.
Its expansion has been anchored by contract manufacturing mandates from Vivo, Oppo and Realme, a sign that Chinese smartphone brands are deepening local partnerships as they recalibrate their supply chains.In 2025, smartphone manufacturing in India grew by 8%. Exports rose by 28% during the year, contributing nearly a third of total production, while domestic sales rose by only 1%.This shift is being fueled by policy support, including production-linked incentives and easing foreign investment rules, analysts said.
Oppo and Vivo’s outsourcing efforts were a major inflection point, Abdul Rahman Khan, research analyst at Counterpoint Research, told TOI. Both Vivo and Oppo started meaningfully expanding their outsourcing around 2024, but volumes increased once that happened, trickling down to local manufacturers like Bhagwati Products.In the case of Bhagwati Products, its partnership with Huaqin, which has an established supply chain presence and relationships in the industry, has also worked, Khan said.Amid scrutiny of foreign direct investment by Indian authorities, Chinese companies are increasingly collaborating with local players to set up joint ventures to manufacture in India.“The PLI cycle that is coming to an end is also leading to a redistribution of volumes,” he said. “We are seeing a share of this shift towards players like Dixon Technologies as brands recalibrate their cost and partnership strategies.”Exports are expected to remain the main driver of growth in 2026, with smartphones continuing to drive the advancement of electronics in India.
But risks remain, analysts warn.“Near-term headwinds, such as disruptions from the US-Iran war could impact logistics, while continued increases in memory prices could create demand-side pressures in the longer term,” said Tarun Pathak, research director at Counterpoint Research.
reconnaissance
Which smartphone brand do you think will benefit the most from local manufacturing partnerships?
