Oppo and Vivo, subsidiaries of the BBK Group, have established extensive manufacturing facilities in India. These units are responsible for producing the complete range of BBK Group brands, including Oppo, Vivo, Realme, OnePlus, and iQoo smartphones.
BBK Group, China’s leading mobile phone manufacturer, has forged partnerships with Indian companies like Dixon Technologies and Karbonn Group to produce its Oppo, Vivo, and Realme smartphones. The move aligns with the company’s interest in leveraging the Production-Linked Incentive (PLI) scheme. To comply with the Government of India’s regulations, BBK Group has opted to collaborate with local players, as reported by the Economic Times.
Despite already having substantial manufacturing units in India, Oppo and Vivo, part of the BBK Group, are collaborating with local manufacturers for production. This move follows the Indian government’s strict actions against Chinese smartphone companies in the past.
Chinese firms are exercising caution regarding direct investments in their own plants due to heightened scrutiny. This scrutiny has encompassed allegations of customs duty and income tax evasion, as well as concerns about money laundering, as reported.
According to a source cited by ET, Oppo and Vivo have not applied for PLI benefits. By collaborating with contract manufacturers who have already applied for PLI benefits, they aim to enhance competitiveness, particularly in light of Samsung’s status as a PLI beneficiary. Despite this, the BBK Group maintained its leadership in the Indian smartphone market, achieving revenue of Rs 81,870 crore in 2022-23.
Previously, it was reported that the government has been urging Chinese mobile phone firms to engage in partnerships with local entities for manufacturing and distribution. Additionally, there has been encouragement for these companies to appoint Indian executives in significant management roles.
The objective is for Chinese companies to enhance their value-addition activities in India, including the local production of components.
Last month, Dixon’s managing director, Atul Lall, announced that the company would be finalizing deals with two prominent global phone brands. Lall mentioned that production for one of the largest global brands is set to commence in the next couple of months, while for another significant customer, production should start within the next four to six months.
According to market tracker Counterpoint Research, Vivo, Oppo, and OnePlus experienced an increase in their market share by up to two percentage points in the calendar year 2023 compared to the previous year. Additionally, Xiaomi and Realme witnessed year-on-year improvements in the October-December quarter of 2023, as per the same data.
BBK Group operates two primary sales divisions in India. Oppo Mobiles India handles sales for Oppo, OnePlus, and Realme brands, while Vivo Mobile India manages sales for Vivo and iQoo. According to the recent financial report filed by Oppo Mobiles India with the RoC, there was a 9% decrease in sales, totaling Rs 51,994 crore in 2022-23, which was attributed to challenging market conditions. In contrast, Vivo Mobile India reported an 11% increase in sales, reaching Rs 29,875 crore during the same period.
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