China's BBK connects with Indian companies for phone production
Oppo, Vivo and Realme smartphones in partnership with Indian manufacturers Dixon Technologies and Karbonn Group, said people with knowledge of the matter. This is partly owing to pressure from the government to get local partners and benefit from the production-linked incentive (PLI) scheme for phone manufacturing, they said.
The move comes despite Oppo and Vivo having a large smartphone plant each in India. These make the entire range of BBK Group brands, such as Oppo, Vivo, Realme, OnePlus and iQoo. Industry executives said Chinese smartphone companies are cautious about directly investing in their own plants for capacity expansion after increased scrutiny in the last few years, ranging from alleged customs duty and income tax evasion to money laundering. The ir bank accounts had also been frozen, forcing them to take legal recourse to ensure business continuity. Investigations are
ongoing. Chinese companies came under pressure in India following the escalation in border tensions a few years ago.
Two industry executives said Vivo and Realme recently began manufacturing a few handsets through a plant owned by Karbonn. Dixon is in the final stages of signing with Oppo and Vivo for contract manufacturing, according to them. As of now, monthly production capacity for Vivo and Realme in the Karbonn plant is around one million units, while the Dixon production will be lower to begin with, they said.
Since Oppo and Vivo did not apply for PLI benefits, partnering contract manufacturers that have done so already will
