Xiaomi Partners With Dixon Technologies to Make Mobile Phones in India

Contract manufacturer Dixon Technologies (India) on Wednesday said it is partnering with Xiaomi's Indian arm to make and export phones for the Chinese firm.

The news, which boosted Dixon's shares by 4 percent, comes after Xiaomi India revealed plans to start making wireless audio products in the country by partnering with electronics manufacturer Optiemus.

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.

Earlier this week, Xiaomi India said that it will make its first local audio gadget at Optiemus Electronics' factory in the northern state of Uttar Pradesh, the company said in a statement, reiterating that it was targeting a 50 percent increase in the production of components locally sourced by 2025.

The push comes as the manufacturer of the Redmi brand of smartphones recently lost out to South Korean rival Samsung as India's top smartphone company.

Xiaomi, which locally manufactures most of the smartphones and TVs it sells in India, did not say when it will start making the audio products. It sells speakers, earbuds, and wired and wireless headphones in India.

In March, Xiaomi was reported to be overhauling its India strategy after misjudging consumer tastes in mobile phones, a costly lapse that allowed Samsung Electronics to pip the Chinese company to the top spot in the world's second biggest market for the devices.

© Thomson Reuters 2023