India has approved a manufacturing joint venture between China's Vivo and local manufacturer Dixon Technologies, marking a new phase in the country's smartphone manufacturing boom. The 51/49 venture, majority-owned by Dixon, will acquire certain manufacturing assets from Vivo and manufacture part of the company's smartphone orders in India, while also being able to produce electronic products for other brands. The approval allows the long-delayed partnership, first announced in December 2024, to proceed after New Delhi cleared the investment under rules requiring extra scrutiny of investment from countries sharing a land border with India. Analysts believe the structure could become a template for similar arrangements, helping broaden India's smartphone manufacturing story beyond Apple, which currently accounts for 57% of the country's smartphone exports by volume. Chinese brands dominate India's smartphone market sales with 72% of the market but contribute less than 10% of exports, highlighting the potential upside if they begin exporting from India like Apple.
Apple Inc.The joint venture could broaden India's smartphone manufacturing beyond Apple, potentially increasing competition for Apple in exports.
Dixon's joint venture with Vivo will manufacture Vivo's smartphone orders and other brands, boosting production demand.