Xiaomi partners Dixon to manufacture smartphones in India

Xiaomi India has partnered with contract manufacturer Dixon Technologies to make smartphones for the domestic market and for exports.

Xiaomi India and Dixon in a joint statement Wednesday said that their partnership will also “explore enhancing component ecosystem in India through the wholly owned subsidiaries of Dixon”.

“The proposed association will be formalized subject to execution of the definitive agreements. Hon’ble Union Minister of State for Electronics & Information Technology, Skill Development & Entrepreneurship, Shri Rajeev Chandrasekhar, congratulated both the business houses on the proposed association,” Dixon said in a media statement

The companies, however, did not disclose the specifics of the partnership.

“This partnership will leverage Dixon’s manufacturing excellence, superior execution track record and Xiaomi’s expertise & leadership in Indian business ecosystem and it represents a major milestone in Indian Governments “Make in India” initiative,” said Atul B. Lall, Vice Chairman & Managing Director, Dixon Technologies.

The announcement to make smartphones in India comes days after Xiaomi said it has signed up Optiemus Electronics to manufacture Bluetooth audio products here.

According to market research firms Counterpoint and Canalys, Xiaomi’s ranking in India’s smartphone market slipped to 3rd/4th position in Q1 2023, with its shipments suffering a 38%-44% decline year-over-year in the January-March quarter. Xiaomi accounted for a 16% share in the quarter, according to both research firms.

ET in its January 3 edition reported that Chinese handset brands such as Xiaomi, Oppo, Vivo and Transsion were in talks with the likes of Bhagwati (Micromax), Lava International, UTL Neolync, Optiemus Electronics, and Dixon Technologies, all of whom have been approved under the PLI scheme.