Xiaomi partners with Indian assembler to manufacture mobile phones locally

Xiaomi partners with Indian assembler to manufacture mobile phones locally

Tech News

Smartphone company Xiaomi has partnered with contract manufacturer Dixon Technologies (India) Ltd to make and export phones for the Chinese firm. 

IT minister Rajeev Chandrasekhar said that Xiaomi has informed Prime Minister Narendra Modi’s government about the plan for Dixon to assemble and export Xiaomi smartphones. As per agency reports, the partners will also explore component manufacturing.

Xiaomi was once an unrivaled leader in India’s smartphone market. It lost steam after facing heightened regulatory scrutiny and stiff competition. Indian state agencies’ crackdown on Chinese firms including Xiaomi has led the companies to explore manufacturing alliances 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 by partnering with electronics manufacturer Optiemus.

After the announcement, Dixon’s shares boosted by 4%.

India has been 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 will open more stores beyond its current network of 20,000 retail partners and boost local procurement of mobile phone parts, in an effort to reduce costs. In an interview recently, he stated that Xiaomi wants to increase sourcing from India, including key components such as display and haptic feedback modules.

(With inputs from agencies)


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Updated: 31 May 2023, 03:02 PM IST

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