India's government has approved a manufacturing joint venture between China's Vivo and Dixon Technologies, a structure that industry experts say could become the blueprint for how Chinese smartphone brands expand production in the country while navigating strict foreign investment rules. The venture — first announced in December 2024 — is expected to add 20–22 million smartphones a year to Dixon's manufacturing volumes based on Vivo's current sales, according to Counterpoint Research.
Joint Venture Structure and Ownership
Under the approved terms, Dixon Technologies will own 51% of the venture and Vivo the remaining 49%. The joint venture will acquire certain manufacturing assets from Vivo, produce part of the company's smartphones in India, and can also manufacture electronic products for other brands. Dixon stated that the partnership will further strengthen its "foothold in the Android smartphone ecosystem in India."
Strategic Implications for Chinese Manufacturers
The approval clears a path for Chinese smartphone makers looking to scale local manufacturing under India's investment framework for companies from neighbouring countries. Industry experts noted that the structure could emerge as the preferred route for such expansion. Tarun Pathak, research director at Counterpoint Research, described the arrangement as a "win-win. It gives Dixon greater manufacturing scale and strengthens local value addition, while providing Vivo a policy-aligned structure with long-term operational stability."
India's Smartphone Manufacturing Landscape
According to the Ministry of Electronics and Information Technology (MeitY), India now produces around 330 million mobile phones annually, making it the world's second-largest handset manufacturer. Counterpoint Research estimates that smartphone production grew 8% in 2025, driven by a 28% rise in exports. Smartphone exports have climbed from about $200 million in FY18 to over $24 billion in FY26.
Export Dynamics: Apple vs. Chinese Brands
| Category | Domestic Market Share | Share of India's Smartphone Exports (by volume) |
|---|---|---|
| Apple | Not specified in source | 57% |
| Chinese brands | 72% | Less than 10% |
Apple accounts for 57% of India's smartphone exports by volume, while Chinese brands command 72% of the domestic market but contribute less than 10% of exports. The Vivo-Dixon venture could help shift that balance by adding local production capacity that may be export-oriented.
Industry Reaction
The joint venture is seen as a significant development for both companies. Dixon gains manufacturing scale and deepens its role in the Android ecosystem; Vivo secures long-term operational stability under India's policy framework. The deal also reinforces India's position as a manufacturing hub for global brands. While the exact production start date was not disclosed, the asset acquisition phase will be a key milestone to watch for industrial buyers and supply chain partners.
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