Vivo and Dixon Technology Joint Venture Gets Indian Government Approval; Duo to Boost Smartphone Output
Summary: India has approved a 51/49 joint venture between Vivo and Dixon Technologies to boost local smartphone manufacturing. The deal, which follows years of regulatory scrutiny, aims to increase export capacity and aligns with India's push for greater domestic involvement in electronics production.
The Indian government has officially approved a manufacturing joint venture between Chinese smartphone giant Vivo and the local firm Dixon Technologies. This significant policy move is expected to accelerate India’s ongoing smartphone manufacturing expansion, building upon the established industrial growth previously catalysed by Apple’s extensive operations in the country.
As per a report by TechCrunch, this approval follows a lengthy regulatory review process that began in December 2024. The venture operates under stringent investment rules introduced in 2020, which mandate enhanced government scrutiny for foreign direct investment from countries that share a land border with India, such as China. What Is the Cost of BSNL Satellite Phone in India? Can Ordinary Citizens Buy It?.
Dixon Technology and Vivo Partnership
The new partnership is structured as a 51/49 joint venture, with Dixon Technologies holding a majority stake and Vivo retaining the remaining interest. Under this agreement, the joint venture will acquire specific manufacturing assets from Vivo to produce a portion of the company’s smartphone orders within India. Additionally, the venture maintains the flexibility to manufacture various electronic products for other brands, according to stock exchange disclosures.
Industry analysts suggest this majority-Indian-owned structure may serve as a sustainable template for other Chinese firms operating in India. By partnering with established local entities, Chinese manufacturers can better navigate the complex regulatory environment while aligning with India’s broader initiative to increase local participation in electronics production.
Impact on Global Manufacturing
India has rapidly transformed into a major global hub for smartphone production, largely driven by Apple and its suppliers, such as Foxconn and Tata. While Apple currently dominates the country's smartphone exports, accounting for 57% by volume, Chinese brands continue to lead the domestic market with a 72% sales share. This new joint venture represents a strategic effort to close the gap between domestic market dominance and export performance. Why Truecaller Claims TRAI’s Whitelisting Is Behind the Surge in Spam Calls.
The venture is expected to significantly increase Dixon’s operational capacity, with projections suggesting an addition of approximately 20 million to 22 million smartphones in annual manufacturing volume. As India’s largest electronics manufacturing services provider, Dixon's expanding portfolio—which already includes manufacturing contracts for brands like Xiaomi—underscores the country's growing reliability in the global electronics supply chain.
(The above story first appeared on LatestLY on Jul 10, 2026 11:30 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).