Xiaomi and Dixon plan to expand their mobile manufacturing partnership for exports and invest in component manufacturing in India.
Dixon’s shares increased by 4% following the news.
On Tuesday, Xiaomi and Dixon’s representatives met with Minister of State for IT Rajeev Chandrasekhar to discuss a proposed initiative.
“They apprised me about their partnership for manufacturing & exporting mobile phones from India and plans to invest in component ecosystem,” Rajeev Chandrasekhar said in a tweet.
“The proposed association will be formalised subject to execution of the definitive agreements. Hon’ble Union Minister of State for Electronics & Information Technology, Skill Development & Entrepreneurship, Shri Rajeev Chandrasekhar, congratulated both the business houses on the proposed association,” Dixon said in a media statement.
Xiaomi previously announced plans to expand in India by partnering with electronics manufacturer Optiemus to produce wireless audio products.
“This partnership will leverage Dixon’s manufacturing excellence, superior execution track record and Xiaomi’s expertise & leadership in the Indian business ecosystem and it represents a major milestone in Indian Governments “Make in India” initiative,” said Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies India.
Xiaomi has partnered with contract manufacturers such as Dixon and Foxconn to manufacture smartphones and TVs in India.
Recent reports from market research firms, Counterpoint and Canalys, have shown that Xiaomi has dropped to 3rd or 4th place in India’s smartphone market as of January 2023.
The company’s shipments have also experienced a significant decline of 38% to 44% compared to the same period in the previous year. Xiaomi’s market share for the quarter was reported to be 16% by both research firms.
During an interview with Reuters, Muralikrishnan B., President of Xiaomi India, shared the company’s strategic plans. The aim is to increase the retail network beyond the current 20,000 partners while also improving cost-efficiency by sourcing more mobile phone parts locally.
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