Indian Government Approves the Joint Venture between Vivo and Dixon Technologies for Smartphone Manufacturing

The Indian government has officially approved a joint venture OF 51:49 between Dixon Technologies and Vivo India to scale up the local smartphone manufacturing and electronic design.

By: Bhumika Sharma
Last Updated on: Jul 10, 2026 16:00 IST
Published on: Jul 10, 2026 12:32 IST
Indian Government Approves the Joint Venture between Vivo and Dixon Technologies for Smartphone Manufacturing

Highlights:

  • The Indian government has given its approval to the joint venture between Vivo and Dixon Technology under the strict Press Note 3 guidelines of 2020 that cover cross border investments.
  • During this agreement, the giant Dixon will hold a controlling 51% stake, while Vivo Mobile India will retain the 49%.
  • The newly formed joint venture will operate as an original equipment manufacturer (OEM) and is authorized to manufacture for Vivo as well as other tech brands.

In this tech manufacturing sector, the Government of India has officially approved a joint venture (JV) between Dixon Technologies and Chinese smartphone brand Vivo Mobile India. This approval was issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on 8 July 2026 and made the way for the two big entities to co-manage the smartphone and electronic component manufacturing under the majority-Indian ownership structure.

Corporate Structure and OEM Guidelines

According to regulatory filings submitted to the stock exchanges, the newly incorporated joint venture company will have a 51:49 equity with Dixon Technologies holding the majority controlling stake and Vivo India holding the remaining 49%. The venture will operate strictly as an Original Equipment Manufacturer (OEM) and its initial focus is on executing Vivo’s smartphone production volume. Apart from that, the corporate structure also allows the facility to act as an ecosystem hub, manufacturing electronic devices and handsets for other technology brands.

Tech and Ecosystem Impact

From a technical and industry point of view, this joint venture shifts Dixon from a standard third-party contract assembler to a strategic operational partner with a long-term commitment. Industry analysts also note that Vivo, which owns around 20-23% of the Indian smartphone market share, is working with Dixon's local manufacturing style and it will heavily impact India's semiconductor packaging, electronic component sourcing and Android ecosystem localization. The working of this venture will start within the December quarter of the current fiscal year.

As per Counterpoint Research, it is stated that Apple now accounts for about 57% of India’s smartphone exports by volume. Chinese brands dominate the domestic market with a 72% market share, yet their export share is less than 10%, which puts much potential to expand production in India and export opportunities. 

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FAQ's

  • Why did this joint venture require specific Indian government approval?
    As under India's Press Note 3 regulation, foreign investments from countries that share a land border like China, require strict government clearance and only an official approval ensures the business remains under Indian control while aligning with New Delhi's strategy to localize global electronics supply chains.
  • What is the business model and ownership structure of the new entity?
    This joint venture operates under a 51:49 equity split which gives India's Dixon Technologies a majority part of stake while Vivo retains the 49%. Its functioning will start as the Original Equipment Manufacturer (OEM) and it will primarily manufacture Vivo devices but there is no mandate to that as it can also produce for other tech brands.

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