After Audio Products, Xiaomi To Manufacture Smartphones In India In Partnership With Dixon

In another boost to the Indian government’s ‘Make In India’ initiative, Chinese smartphone giant Xiaomi now plans to manufacture smartphones in the country in partnership with contract manufacturer Dixon Technologies.

Xiaomi India plans to manufacture the smartphones not only for selling in the country but also for exporting. Besides, the two companies will also explore opportunities to enhance the component ecosystem in the country, Dixon said in a statement on Tuesday (May 31).

Commenting on the partnership, Atul B. Lall, VC & MD of Dixon, said, “This partnership will leverage Dixon’s manufacturing excellence, superior execution track record and Xiaomi’s expertise & leadership in the Indian business ecosystem and it represents a major milestone in Indian government’s “Make in India” initiative.”

However, the company didn’t give any additional details about where the smartphones would be manufactured.

The development comes days after Xiaomi said it plans to manufacture wireless audio products in India, in partnership with Optiemus. 

While Xiaomi and other Chinese players have ruled the Indian smartphone market for years, they have been facing stiff competition from Samsung. As per a report, Xiaomi held 16% market share in the Indian smartphone market in March quarter of 2023, behind Vivo (17%) and Samsung (20%).

Xiaomi’s decision to follow the footsteps of other manufacturers like Samsung and Apple and produce smartphones in India comes as a shot in the arm of the central government which has been trying to make the country a manufacturing hub for smartphones.

The government has launched a number of production linked incentive (PLI) schemes to boost local production in the country of various products, including smartphones.

Following this, many companies, including Apple suppliers, have made a beeline to invest in India. Beside the PLI scheme, the geopolitical tensions between Washington and Beijing have also made global companies look for an alternative production hub in the region, and India is benefitting from it.

Earlier this month, Apple supplier Foxconn conducted a groundbreaking ceremony for its $500 Mn manufacturing facility in Telangana. Apple also plans to manufacture iPhone15 and iPhone15 Plus in India in partnership with the Tata Group.