en.Wedoany.com Reported - The Indian government has approved a manufacturing joint venture between Chinese smartphone maker Vivo and local electronic manufacturing services provider Dixon Technologies, marking a potential new phase in the localization of the country's smartphone manufacturing industry.

This approval allows Vivo to proceed with a manufacturing partnership that had been long delayed since its initial announcement in December 2024. The investment was approved under regulations introduced in 2020, which require additional government scrutiny of investments from countries sharing a land border with India, including China. According to documents filed by Dixon with the stock exchange, the joint venture will acquire some manufacturing assets from Vivo, produce a portion of Vivo's smartphone orders in India, and may manufacture electronic products for other brands.

The joint venture has a shareholding ratio of 51:49, with Dixon holding a majority stake and Vivo holding the remaining shares. Analysts believe this structure reflects a shift in how Chinese smartphone brands are expanding manufacturing in India through local partnerships and could serve as a template for similar arrangements in the industry. Previously, Apple has helped India become a global hub for smartphone production.

According to Counterpoint Research data, Apple accounts for 57% of India's smartphone exports. While Chinese brands hold 72% of the Indian smartphone market by sales value, their export contribution is less than 10%. This gap suggests there is still room for growth if Chinese brands, like Apple, expand their export operations from India.

Vivo has been manufacturing and exporting smartphones in India for years, but the newly approved joint venture marks a shift toward an Indian-majority manufacturing structure. Vivo maintained its leading position in the Indian smartphone market in the first quarter of 2025 with a 23% shipment share.

Tarun Pathak, Research Director at Counterpoint Research, stated that the approval of this joint venture creates a win-win situation for both parties. He added that the Indian-majority structure allows Vivo to better align with policies while providing Dixon with the scale to expand local value addition and pursue exports.

Atul Lall, Managing Director of Dixon, said during the company's May earnings call that based on Vivo's current sales volume, the joint venture could increase smartphone manufacturing by approximately 20 million to 22 million units annually. Dixon already manufactures smartphones for Xiaomi, and this joint venture further solidifies its role as a manufacturing partner in India's electronics industry.