China's largest mobile phone manufacturer BBK Group is reportedly in a strategic collaboration with Indian manufacturers Dixon Technologies and Karbonn Group to bolster the production of its popular smartphone brands — Oppo, Vivo, and Realme.
This move comes amidst the mobile phone maker's interest in leveraging India's Production-Linked Incentive (PLI) scheme, further cementing its commitment to the burgeoning Indian market.
According to a report by the Economic Times, the group's decision to team up with Indian manufacturers stems from the Government of India's pressure to involve local partners and heightened scrutiny faced by Chinese smartphone companies in India.
Oppo and Vivo have long-established manufacturing units in India, producing a wide range of smartphones under the BBK Group umbrella, including Oppo, Vivo, Realme, OnePlus, and iQoo brands.
ET stated, citing sources, that by leveraging existing PLI benefits through partnerships with contract manufacturers, Oppo and Vivo aim to enhance competitiveness in the Indian market, especially with rival Samsung, which is already benefiting from the PLI scheme.
In the financial year 2022-23, the BBK Group maintained its leadership position in the Indian smartphone market with reported revenues of ₹81,870 crore.
BBK Group operates through two primary sales divisions in India, namely Oppo Mobiles India and Vivo Mobile India. While Oppo Mobiles India reported a 9% decrease in sales, attributed to challenging market conditions, Vivo Mobile India experienced an 11% increase in sales.
The shares of Dixon Tech were trading 3.46% higher at the last hour, up for the fifth day in a row. The stock has gained 2% in 2024 so far.
(Edited by : Amrita)
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