Vivo, Dixon Technologies Form Joint Venture for Smartphone Manufacturing in India
India's government has approved a manufacturing joint venture between China's Vivo and local firm Dixon Technologies. The deal could propel India's smartphone manufacturing boom following Apple's success.
India on Thursday approved a manufacturing joint venture between China-based Vivo and Indian firm Dixon Technologies, potentially marking the next phase of the country's smartphone manufacturing surge after Apple established India as a global production hub.
The approval allows Vivo to proceed with a manufacturing partnership that faced delays due to investment rules for countries sharing a land border with India, such as China. This joint venture will produce a portion of Vivo's smartphones within India and may also manufacture electronics for other brands. Dixon Technologies will hold a majority stake of 51% in the venture, with Vivo holding the remaining 49%.
This collaboration signifies a notable development in India-China economic ties, which have seen increased scrutiny. The venture underwent extensive review under investment regulations implemented in 2020, which mandate additional governmental oversight for investments originating from bordering nations.
Dixon Technologies, already India's largest electronics contract manufacturer, produces devices for various brands, including Nokia. This partnership with Vivo is expected to enhance Vivo's local production capacity and align with the Indian government's "Make in India" initiative, further boosting the country's electronics manufacturing sector.