Xiaomi, the smartphone company, has entered into a partnership with Dixon Technologies (India) Ltd, a contract manufacturer, to produce and export phones on behalf of Xiaomi. The collaboration aims to strengthen Xiaomi’s manufacturing capabilities in India and expand its presence in the country.
All About the Xiaomi-Dixon Technologies Partnership!
According to IT minister Rajeev Chandrasekhar, Xiaomi has informed the Indian government, led by Prime Minister Narendra Modi, about its plans to have Dixon assemble and export Xiaomi smartphones. The partnership may also explore opportunities in component manufacturing, further enhancing India’s local manufacturing ecosystem.
Xiaomi, which was once a dominant player in the Indian smartphone market, faced regulatory scrutiny and intense competition, leading to a decline in its market position. Additionally, Xiaomi had to begin searching for manufacturing partnerships with local partners as a result of the crackdown on Chinese companies by Indian state authorities, maybe in an effort to win over the Indian government.
This latest partnership follows Xiaomi India’s announcement to manufacture wireless audio products in the country through a collaboration with electronics manufacturer Optiemus. The news of Xiaomi’s collaboration with Dixon Technologies resulted in a positive response from the market, with Dixon’s shares experiencing a 4% boost.
India has been actively encouraging global companies to invest in local manufacturing as part of its strategy to become a key player in the global electronics supply chain. By attracting manufacturing investments, India aims to enhance its domestic manufacturing capabilities and reduce its dependence on imports.
In March, Xiaomi India President Muralikrishnan B. stated in an interview with Reuters that the company plans to expand its retail network beyond the existing 20,000 retail partners and increase the local procurement of mobile phone parts to reduce costs. Additionally, Xiaomi expressed its intention to source more components from India, including essential elements like display and haptic feedback modules, as part of its commitment to strengthening its supply chain within the country.
The collaboration between Xiaomi and Dixon Technologies signifies a significant step towards fostering local manufacturing and boosting the Indian electronics industry. It showcases Xiaomi’s dedication to aligning with the Indian government’s vision for a self-reliant and globally competitive electronics manufacturing sector.
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