Beyond smartphone assembly, vivo’s partnership with Dixon signals broader manufacturing ambitions, with exports, IoT devices, and increased local sourcing shaping its India roadmap.
Chinese smartphone maker vivo is set to deepen its manufacturing presence in India by positioning its joint venture (JV) with Dixon Technologies as the foundation of its long-term localisation strategy.
The venture is expected to support domestic manufacturing, exports, local sourcing, and future expansion into Internet of Things (IoT) products.
The development follows the Indian government’s approval of the JV under the Press Note 3 framework. Dixon Technologies will hold a 51 per cent stake in the venture, while vivo Mobile India will own the remaining 49 per cent.
As part of the arrangement, vivo is expected to transfer its Greater Noida smartphone manufacturing facility, along with its machinery and equipment, to the JV. Ownership of the factory land, however, will remain with vivo. The facility currently manufactures smartphones for the company’s Indian operations.
According to reports, the venture will initially prioritise vivo’s production requirements and is expected to take between one and one-and-a-half years to stabilise. Only after reaching operational maturity is it likely to begin manufacturing products for other original equipment manufacturers (OEMs).
The partnership is also expected to broaden vivo’s manufacturing portfolio beyond smartphones. Depending on market demand and product strategy, the company could manufacture connected devices such as tablets and wearables in India.
vivo also plans to increase local sourcing of components, subject to Indian suppliers meeting its global quality and cost requirements. The company is expected to assess sourcing opportunities through Dixon’s proposed project under the Electronics Components Manufacturing Scheme (ECMS) 2.0.
Reports further indicate that vivo aims to progress from a ‘Make in India’ approach towards greater ‘Design in India’ capabilities. While hardware design activities continue to be centred in China, the company may expand engineering and design functions in India as the domestic electronics ecosystem develops.
For Dixon Technologies, the partnership is expected to contribute significantly to future growth. During an analyst call in May, the company said vivo’s manufacturing business and export opportunities could eventually add 20-22 million units of annual production capacity.
