Smartphone company Xiaomi has partnered with Dixon Technologies (India) Ltd, a contract manufacturer, to manufacture and export phones for the Chinese firm.
IT Minister Rajiv Chandrasekhar said Xiaomi has informed Prime Minister Narendra Modi’s government about Dixon’s plan to assemble and export Xiaomi smartphones. According to the agency’s report, the partners will also explore component manufacturing.
Xiaomi was once the undisputed leader in the smartphone market in India. It lost steam after facing increased regulatory scrutiny and stiff competition. Indian state agencies’ crackdown on Chinese firms, including Xiaomi, has prompted the companies to explore tie-ups with local partners, possibly to win New Delhi’s favor.
The news comes after Xiaomi India revealed plans to start making wireless audio products in the country in partnership with electronics maker Optimus.
Following the announcement, Dixon’s shares rose 4%.
India is encouraging global companies to invest more in local manufacturing as a part of its efforts to become a powerhouse in the global electronics supply chain.
Earlier in March, Xiaomi India President Muralikrishnan B told Reuters that the company would open more stores from its existing network of 20,000 retail partners and promote local sourcing of mobile phone parts in an effort to reduce costs. In a recent interview, he said that Xiaomi is looking to increase sourcing from India, including key components such as displays and haptic feedback modules.
(with inputs from agencies)
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Updated: May 31, 2023, 03:02 PM IST