India's Smartphone Manufacturing Boom Enters New Phase with Vivo-Dixon Joint Venture

India has approved a manufacturing joint venture between Vivo and local manufacturer Dixon Technologies, marking the next phase of the country's smartphone manufacturing boom after Apple helped turn India into a global smartphone production hub. The approval allows Vivo to proceed with a long-delayed manufacturing partnership first announced in December 2024, after New Delhi cleared the investment under investment rules introduced in 2020 that require extra government scrutiny of investment from countries sharing a land border with India — a category that includes China.

Investment Partnership

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.

■Vivo has been manufacturing and exporting smartphones from India for years.

■Dixon is India's largest electronics manufacturing services company.

■The joint venture could add annualized manufacturing volumes of about 20 million to 22 million smartphones.

Market Impact

India has emerged as a major global smartphone manufacturing hub as Apple and its suppliers expanded iPhone production in the country while diversifying supply chains beyond China. Government incentives have also helped attract global electronics manufacturers, boosting the country's role in global smartphone production.

The developments in smartphone manufacturing and exports in India are expected to play a significant role in the country's economic growth, and the Vivo-Dixon joint venture can be seen as a crucial step in this growth.