India hits 330 million phones a year: Vivo-Dixon JV cleared as exports top $24 billion

India now produces around 330 million mobile phones annually, making it the world’s second-largest handset manufacturer, according to the Ministry of Electronics and Information Technology. Smartphone exports have climbed from about $200 million in FY18 to over $24 billion in FY26, with Counterpoint Research estimating production grew 8% in 2025, driven by a 28% rise in exports.

Against that backdrop, the government has approved a manufacturing joint venture between China’s Vivo and Dixon Technologies, clearing a partnership first announced in December 2024. Dixon will own 51% of the venture and Vivo the remaining 49%, with the JV set to acquire certain manufacturing assets from Vivo, produce part of the company’s smartphones in India, and manufacture electronic products for other brands as well.

Apple currently accounts for 57% of India’s smartphone exports by volume. Chinese brands, by contrast, command 72% of the domestic smartphone market but contribute less than 10% of exports — a gap the Vivo-Dixon structure is expected to help narrow.

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

Industry experts said the approval 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. Tarun Pathak, research director at Counterpoint Research, called the deal a ‘win-win,’ giving Dixon greater manufacturing scale and Vivo a policy-aligned structure with long-term operational stability.