India approves Vivo-Dixon smartphone manufacturing JV

India has approved a manufacturing joint venture between Chinese smartphone maker Vivo and Indian electronics manufacturer Dixon Technologies, a move analysts say could establish a new template for Chinese companies expanding production in the country. The government cleared the long-delayed partnership on Thursday, July 9, 2026, allowing the venture to proceed under investment rules that require extra scrutiny for investments from countries sharing a land border with India.

The joint venture, first announced in December 2024, will be majority-owned by Dixon with a 51% stake, while Vivo will hold the remaining 49%. According to a stock exchange filing by Dixon, the venture will acquire certain manufacturing assets from Vivo, produce a portion of Vivo's smartphone orders in India, and also manufacture electronic products for other brands. The structure reflects a strategic shift for Chinese smartphone brands, which dominate India's domestic sales but have lagged in exports, as they navigate tighter regulatory scrutiny.

The approval comes under investment rules introduced in 2020, which require heightened government review of investments from neighboring countries, a category that...