‘A win-win’: analyst on Vivo-Dixon’s 20-22 million-unit smartphone manufacturing JV

‘The JV is 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,’ said Tarun Pathak, research director at Counterpoint Research, on the newly approved manufacturing joint venture between China’s Vivo and Dixon Technologies.

The approval clears a partnership first announced in December 2024, under which Dixon will own 51% of the venture and Vivo the remaining 49%. The JV 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 shares rose 3.5% following the announcement.

Based on Vivo’s current sales, the venture could add 20-22 million smartphones a year to Dixon’s manufacturing volumes. Dixon said the partnership will further strengthen its ‘foothold in the Android smartphone ecosystem in India.’

Industry experts said the deal structure could become the template for how other Chinese smartphone brands expand production in India while navigating the country’s strict foreign investment rules for companies from neighbouring countries.

The approval comes as India’s smartphone manufacturing sector expands sharply. The country now produces around 330 million mobile phones annually, according to the Ministry of Electronics and Information Technology, making it the world’s second-largest handset manufacturer. Counterpoint Research estimates smartphone production grew 8% in 2025, driven by a 28% rise in exports, which have climbed from about $200 million in FY18 to over $24 billion in FY26. Chinese brands currently hold 72% of India’s domestic smartphone market but contribute less than 10% of exports, while Apple accounts for 57% of export volume.