Vivo India will inaugurate its new manufacturing unit this year, which is set to double its production capacity, according to CEO Jerome Chen. The Chinese smartphone manufacturer aims to focus on appointing local leadership and enhancing value addition in the years ahead.
“We are excited to be launching our business at a new manufacturing location. After it is fully operational, this facility will allow us to double our manufacturing capacity, further demonstrating our dedication to “Atmanirbhar Bharat,” Chen stated.
Since 2022, the business has produced 25 million 5G phones.
As the firm marks ten years in India, the senior executive stated in an Indian Impact Report 2023 that Vivo has invested ₹3,500 crore in the nation to date, with over 150 million smartphones being produced in Greater Noida, Uttar Pradesh. In 2022 and 2023, Vivo shipped phones valued at ₹90 crore and ₹300 crore, respectively, he continued.
Vivo intends to implement a two-pronged localization strategy for India. The company will focus on empowering Indian leaders to oversee local operations and enhance its emphasis on India-specific design elements by localizing product design, camera effects, and the overall product experience.
“The past decade was dedicated to growth and consolidation in the competitive Indian market. In the coming decade, our focus will shift to localizing various aspects, such as manufacturing, the local value chain, and distribution. We have begun designing phones that cater to our consumers’ local tastes and preferences through our ‘Design for India’ initiative,” Chen stated.
The implementation of new localization technology, the establishment of a new factory in 2024, and the continuous localization of crucial components such as memory, OLED displays, camera modules, and optical image stabilizers will all contribute to the creation of local value addition.
The report states that the increase in local sourcing can be attributed to the indigenization of critical components. For example, all motherboards used in Vivo smartphones were built in India, and over 90% of the packaging, batteries, and chargers were supplied locally.
The manufacturer of smartphones, which has a 19% market share in India, has more than 70,000 retail locations, 650 exclusive stores, and 650 service centers. Both directly and indirectly, the company created roughly 200,000 jobs in India.
