Chinese brands hold 72% of India’s phone market but under 10% of exports: Vivo-Dixon JV aims to close the gap

Chinese smartphone brands command 72% of India’s domestic smartphone market but contribute less than 10% of the country’s smartphone exports, according to industry data cited alongside the government’s approval of a manufacturing joint venture between China’s Vivo and Dixon Technologies. Apple, by comparison, accounts for 57% of India’s smartphone exports by volume.

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.

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% following the announcement. The company said the deal will further strengthen its ‘foothold in the Android smartphone ecosystem in India.’

The move comes as India’s smartphone manufacturing base expands rapidly. 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.

Industry experts said the Vivo-Dixon structure could become the preferred route for other Chinese smartphone makers looking to scale local manufacturing under India’s investment framework for companies from neighbouring countries. Tarun Pathak, research director at Counterpoint Research, described the arrangement as a ‘win-win,’ giving Dixon greater manufacturing scale and Vivo a policy-aligned, operationally stable structure.