In a significant development, Dixon Technologies India Ltd., a key supplier for China’s renowned smartphone manufacturer, Xiaomi Inc., is gearing up to inaugurate a sprawling new factory in India.
The factory is slated to be located on the outskirts of New Delhi in the National Capital Region (NCR).
This move aligns with India’s efforts to encourage Chinese tech giants to collaborate with local manufacturing companies, marking a substantial stride towards self-reliance under the ‘Make in India’ initiative.
Substantial Investment and Expansive Facility
Insiders familiar with the situation have disclosed to Bloomberg that Dixon is poised to inject over 4 billion rupees ($48.2 million) into the factory over a three-year period.
The plant’s impressive expanse will cover more than 300,000 square feet, equivalent to the size of six football fields.
Dixon Technologies will undertake large-scale production of Xiaomi smartphones at this facility, with plans for an official inauguration later this month by a government official.
Xiaomi’s Strategic Shift Amidst Regulatory Pressure
The report highlights that Xiaomi, the Chinese smartphone giant, has been compelled to form a partnership with Dixon for smartphone assembly due to the Indian government’s persistent push for localization, spanning from manufacturing to device distribution.
Consequently, Xiaomi’s previous suppliers in India, namely Bharat FIH, a subsidiary of Taiwan’s Foxconn Technology Group, and China’s DBG Technology Co., may experience a decline in business prospects.
However, as of the time of reporting, neither Xiaomi nor Dixon has issued an official statement on this development.
Earlier this year, Xiaomi had collaborated with India’s Optiemus Electronics Ltd. to manufacture its Bluetooth neckband earphones. Previously, these earphones were imported from China and sold in India.
Xiaomi’s Past Dominance and Challenges
Once at the forefront of the Indian smartphone market, Xiaomi faced challenges, including stringent regulatory scrutiny and overexpansion of its product portfolio, leading to a decline in its market dominance.
The company’s extensive product lineup created confusion among customers, contributing to the need for strategic shifts in its operations.
Stay tuned for further updates on this noteworthy partnership between Dixon Technologies and Xiaomi, which could reshape the landscape of smartphone manufacturing in India and bolster the ‘Make in India’ campaign.