Chinese smartphone maker Vivo, after a strong start to the year, is optimistic about its strategy in India and is set to begin manufacturing at its new Greater Noida facility soon. This new plant spans approximately 169 acres and boasts an annual production capacity of 60 million units, with potential to double to 120 million units once fully operational, according to Vivo's India Impact Report 2023, launched on Tuesday.
Vivo has not yet disclosed a timeline for scaling the plant to full capacity.
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| This new facility will have an annual production capacity of 60 million units |
In the first quarter of 2024, Vivo became the largest smartphone manufacturer in India by volume, surpassing Samsung with a market share of 16.2%, according to International Data Corporation (IDC) data. Vivo's new facility is part of a dual strategy in India: ramping up domestic manufacturing and focusing on “India-centric” products by localizing design, camera effects, and overall user experience.
Under its 'Design for India' initiative, Vivo has started crafting phones that cater to local tastes and preferences. The Greater Noida manufacturing facility has produced over 150 million smartphones to date, said Jerome Chen, CEO of Vivo India, in the annual India Impact Report.
These expansions are part of a ₹7,500 crore investment Vivo announced last year. So far, the company has invested ₹3,500 crore in India, primarily to build its manufacturing infrastructure.
Chen added, “This facility, once fully operational, will allow us to double our manufacturing capacity, reinforcing our commitment to Atmanirbhar Bharat.”
In 2023, over 99% of Vivo smartphones sold in India were manufactured locally, a significant increase from 26% in 2014. Vivo recently moved out of its previously leased Greater Noida facility, which had an annual capacity of 40 million devices and employed around 10,000 workers. This plant was acquired by Bhagwati Enterprises, the manufacturing arm of Micromax Informatics.
Over the past nine years, Vivo's manufacturing facility has benefited over 15,000 Indians and created 200,000 direct and indirect job opportunities. Vivo plans to increase localization of critical components such as OIS, camera modules, memory, and OLED displays, and aims to empower Indian leaders to spearhead operations.
“In alignment with the Prime Minister’s vision of establishing India as a primary export hub, we have contributed by exporting smartphones worth around ₹400 crore,” Chen stated.
Currently, Vivo operates six flagship stores in India, located in Delhi, Ahmedabad, Bengaluru, and Coimbatore, with plans to expand to 10 stores by 2024. Vivo also boasts over 1,000 distribution partners, 30,000 brand associates, and around 70,000 retail touchpoints across the country.