Vivo-Dixon JV becomes the template for Chinese smartphone makers navigating India’s investment rules

Government approval for a manufacturing joint venture between China’s Vivo and Dixon Technologies could become the blueprint for how Chinese smartphone brands expand production in India while navigating the country’s strict foreign investment rules for companies from neighbouring countries, industry experts said.

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.

Tarun Pathak, research director at Counterpoint Research, said the structure could emerge as the preferred route for other Chinese smartphone makers looking to scale local manufacturing in India. ‘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,’ he said.

The venture could add 20-22 million smartphones a year to Dixon’s manufacturing volumes based on Vivo’s current sales, and Dixon shares rose 3.5% on the announcement. Dixon said the deal will further strengthen its ‘foothold in the Android smartphone ecosystem in India.’

The approval comes as India strengthens its position as a global smartphone manufacturing hub, producing around 330 million mobile phones annually according to the Ministry of Electronics and Information Technology, making it the world’s second-largest handset manufacturer. Smartphone exports have climbed from about $200 million in FY18 to over $24 billion in FY26, even as Chinese brands, which hold 72% of India’s domestic smartphone market, contribute less than 10% of exports.