Vivo-Dixon JV: A model for Chinese phone companies in India

NEW DELHI: The government’s approval of a joint manufacturing venture between Chinese companies Vivo and Dixon Technologies could become a blueprint for how Chinese smartphone brands can expand production in the country while navigating strict foreign investment rules.The approval gives a partnership first announced in December 2024, under which Dixon will own 51% of the project and Vivo the remaining 49%. The joint venture will acquire certain manufacturing assets of Vivo, produce a portion of the company’s smartphones in India and can also manufacture electronic products for other brands. Dixon said the partnership will strengthen its “foothold in the Android smartphone ecosystem in India”.Industry experts said the structure could emerge as the preferred route for Chinese smartphone manufacturers looking to expand local manufacturing under Indian investment by companies from neighboring countries.The approval comes at a time when India is strengthening its position as a global hub for smartphone manufacturing. According to MeitY, the country now produces about 330 million mobile phones annually, making it the second largest mobile phone manufacturer in the world.

Counterpoint Research estimates that smartphone production will grow by 8% in 2025, driven by a 28% rise in exports. Smartphone exports rose from around $200 million in FY18 to over $24 billion in FY26.Apple represents 57% of India’s smartphone exports by volume. In contrast, Chinese brands control 72% of the local smartphone market but contribute less than 10% of exports. The project could add 20 to 22 million smartphones per year to Dixon’s manufacturing volumes based on Vivo’s current sales.“The joint venture is a win-win. It gives Dixon greater manufacturing scale and enhances local value addition, while providing Vivo with a policy-compliant structure with long-term operational stability,” said Tarun Pathak, Research Director, Counterpoint Research.