Xiaomi, Oppo, and Vivo are in talks with Indian companies to produce phones for global export.

Three of China’s biggest smartphones have started talks with Indian manufacturers on the possibility of making phones in India for export to the world, an essential step in creating India as the center of electronics manufacturing.

Xiaomi, Oppo, and Vivo are in discussions with Indian contract phone companies to take advantage of the cash incentives that are readily accessible to local companies those who know of the subject claimed.

If they decide to go ahead, it is planned to acquire Lava International.

And Dixon Technologies, to assemble the phones and start exporting from their factories early this year, claimed they would not be quoted on the delicate negotiations.

 

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This collaboration could be a significant milestone in an industry that Chinese brands increasingly control.

China is the largest consumer in the world and manufacturer of smartphones.

But Xiaomi and its rivals are seeking ways to expand their reach internationally since their market in China is declining.

According to sources, Oppo and Vivo have started discussions with Lava, and Xiaomi is pursuing Dixon.

Both companies are pursuing government cash incentives that are tied to their production capacity in a scheme designed to increase India more competitive as an electronics manufacturer.

According to one source, Chinese executives are scheduled to start visiting Lava or Dixon factories shortly, once Covid travel restrictions end.

Reps from Lava, Dixon, Xiaomi, and Oppo did not respond to requests for information.

A spokesperson for Vivo referred to earlier statements that the company aims to export products from India before 2022’s end.

The government has been pushing foreign brands to increase exports to gain access to India, the fastest-growing smartphone market.

Globally, companies are looking at ways to reduce dependence on a China-centric supply chain after a tense trade dispute between China and the US and shipping limitations caused by pandemics.

India, together with Southeast Asia, is emerging as a potential alternative.

“India is making the most of the technology cold war between the US and China, and now China and Taiwan, to strategically increase electronics manufacturing,” said Priya Joseph. He is a policy analyst with Counterpoint.

Counterpoint. “After getting phone makers to make in India for the domestic market, the government is preparing the ground for the next level of battle in phone exports.”

The mobile exports of India have exploded since the government launched the Production-Linked Incentive or PLI program in 2020.

Mobile exports are predicted to exceed the 450 billion rupees ($5.9 billion) during the year that ended March, a 30 percent increase within five years in the estimation of the India Cellular & Electronics Association.

“We foresee another 10-fold growth by 2026 riding on the key pillars of Apple and Samsung’s global value chain ecosystem, as well as large domestic companies such as Lava,” stated Pankaj Mohindroo, chairman of the association.

“India is expected to reach $60 billion (roughly around Rs. 458,628 crores) in exports by 2026.”

Many big companies had signed up to the government’s incentive program when it was announced in mid-2020. The program was planned to generate $150 billion (roughly approximately Rs. 11,18,080 crore) in mobile phone sales for five to 6 years.

The primary suppliers of Apple, Foxconn, Wistron, and Pegatron, were the first to agree to the plan, and Lava Dixon.

Since then, the government has expanded similar incentive programs to various electronic devices, including laptops, semiconductors, and computers.

While Delhi has been able to ban Chinese software and applications on TikTok and games government is open to foreign companies that could help propel forward with their long-term goals.

Xiaomi, Oppo, and Vivo have been shifting capacity to India in the past few years.

The country has emerged as the second-largest manufacturer and assembly line for mobile phones in terms of volume. Around a hundred factories make basic feature phones and mobile phones.

This is up from 2 in 2014. as per Amitabh Kant, the head of executive management at the think organization, Niti Aayog.

Most of these phones are within the lower-end of—10,000 price bracket.

A few of the biggest domestic contract phone companies are exporting Indian-made phones. Lava, for example, exports its products to the US and Africa, while Dixon produces Motorola phones specifically for those in the US market.