Xiaomi – who has left its days of being an undisputed market leader in the Indian smartphone sector behind it – is once again increasing its focus in the world’s second largest smartphone market. This time, the Chinese manufacturer has partnered with contract manufacturer Dixon Technologies India Ltd to make and export phones locally. According to media reports, the Chinese company is planning to hand some of its smartphone assembly in the world’s second-largest internet market to the homegrown partner. Currently, Bharat FIH – a unit of Taiwan’s Foxconn Technology Group – makes the bulk of Xiaomi’s smartphones in India.
Media reports add that the partners will explore component manufacturing within the country as well, through the wholly owned subsidiaries of Dixon in the country. Their representatives met with Rajeev Chandrasekhar, Ministry of State for IT, on Tuesday regarding the matter.
They apprised me about their partnership for manufacturing & exporting mobile phones from India and plans to invest… pic.twitter.com/m8O0hGMT6b
— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) May 30, 2023
The development comes at a time when major foreign companies like Apple have been shifting their focus towards and relocating the production of their devices to India and away from China, owing to a host of challenges. It also underscores the emergence of the world’s second-largest internet market as an attractive destination for the manufacturing of devices such as smartphones, due to its vast consumer market, favorable government initiatives, cost advantages, and more.
“Xiaomi, which has built a strong brand equity over the years in India is known for its high quality and efficiency is reckoned as a strong force in smart mobile phones market in India and people across the nations have strong faith in their products. We are ecstatic and encouraged by the trust they have reposed on Dixon for the proposed association,” said, Atul B. Lall, Vice Chairman & MD, Dixon Technologies (India). This also comes mere days after Xiaomi revealed that it had signed up Noida-based Optiemus Electronics to manufacture Bluetooth audio in India.
Under the partnership, Dixon Technologies will leverage its state-of-the-art manufacturing facilities and expertise to produce mobile phones for Xiaomi in India. The move aligns with the Indian government’s vision of promoting domestic manufacturing under the “Make in India” initiative, which aims to boost local production and create employment opportunities.
The partnership holds several benefits for both companies. For Dixon Technologies, the association with Xiaomi, one of the leading smartphone brands globally, strengthens its position in the mobile manufacturing space. Xiaomi, on the other hand, can leverage Dixon Technologies’ manufacturing capabilities to streamline its supply chain and reduce its dependence on imports. By localizing production, Xiaomi can take advantage of cost efficiencies, better control over the manufacturing process, and faster time-to-market for its smartphones.