Vivo is positioning its joint venture with Dixon Technologies as the centrepiece of its India localisation strategy.
The company is expected to transfer its Greater Noida manufacturing facility to the JV and gradually expand into IoT devices and exports.
Manufacturing for other brands is likely to begin only after the venture stabilises Vivo's smartphone production.
Vivo Bets on Dixon JV to Expand India Manufacturing, Eye Exports
The smartphone maker is expected to shift its Greater Noida plant to the joint venture, expand into IoT devices and explore exports as part of its next phase of localisation
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Summary
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Chinese smartphone maker Vivo is positioning its joint venture (JV) with Dixon Technologies as the next step in its India localisation strategy, according to a Moneycontrol report.
The report said Vivo plans to transfer its Greater Noida manufacturing facility to the JV, while also exploring exports and expanding into Internet of Things (IoT) products over time.
The move comes after the government approved the JV under Press Note 3 norms last week. Dixon will hold a 51% stake in the venture, while Vivo Mobile India will own the remaining 49%.
JV to Drive Local Manufacturing and Exports
According to the report, Vivo sees the partnership as a way to move beyond local assembly and build a stronger manufacturing ecosystem in India.
The Greater Noida facility, which currently manufactures smartphones for Vivo's India business, is expected to be transferred to the JV along with its equipment and machinery. However, ownership of the factory land will remain with Vivo.
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Sources told the publication that the venture could take around one to one-and-a-half years to stabilise before it starts manufacturing products for other original equipment manufacturers (OEMs). Until then, the focus will remain on meeting Vivo's own production requirements.
IoT and Local Sourcing in Focus
The JV is also expected to support Vivo's expansion into connected devices, with tablets and wearables among the products that could eventually be manufactured in India, depending on market demand and the company's product plans.
The report added that Vivo plans to increase local sourcing of components, provided Indian suppliers meet its global quality and cost standards. The company is also expected to evaluate sourcing electronic components through Dixon's project under the Electronics Components Manufacturing Scheme (ECMS) 2.0.
According to the report, Vivo is also looking beyond "Make in India" towards "Design in India". While hardware design continues to be carried out mainly in China, the company could expand design capabilities in India as the domestic electronics supply chain matures.
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The partnership is also expected to support Dixon's long-term growth. During an analyst call in May, Dixon said the Vivo business and exports could add 20–22 million units annually over time.