Chinese smartphone giant Oppo is facing increasing pressure to establish a manufacturing partnership in India, as it remains one of the last major Chinese handset makers without a domestic tie-up. The Indian government has informally urged the company to expedite its search for a local partner, with talks ongoing between Oppo and several Indian Electronics Manufacturing Services (EMS) players, according to sources familiar with the matter.
Oppo has already taken initial steps toward localizing production by outsourcing some smartphone manufacturing to the Greater Noida facility of the Bhagwati-Huaqin joint venture, a factory previously operated by Vivo. The JV is also producing smartphones for Vivo from the same facility. However, Oppo is reportedly seeking a more substantial long-term deal to strengthen its manufacturing presence in India.
Previously, the Chinese company explored partnerships with Micromax’s associate company Bhagwati Products, Dixon Technologies, and Lava International. Currently, it is in discussions with Tata Electronics for a Dixon/Vivo-style manufacturing agreement. However, such a deal could face challenges, as Tata Electronics is a key supplier for Apple, which may have reservations about its involvement with a Chinese manufacturer.
Sources indicate that despite Apple’s potential concerns, Oppo is under significant pressure to form a domestic joint venture to comply with government directives. An official announcement regarding Oppo’s manufacturing plans is expected in the coming months. The situation mirrors previous negotiations between Tata and Vivo, which ultimately collapsed due to valuation disputes and Apple’s strategic considerations.
Rajesh Agarwal, Director of Bhagwati Products, confirmed that Oppo’s smartphones are currently being manufactured at the Bhagwati-Huaqin JV’s factory. “The factory is operational, and production is ongoing for both Oppo and Vivo. Oppo was added as a customer after securing necessary approvals,” he stated.
Despite outsourcing some production, Oppo continues to manufacture its own devices, as well as those of its sub-brands OnePlus and Realme, at its Greater Noida facility, operational since 2016. Realme, which started as an Oppo sub-brand but now functions independently, relies on Oppo and Dixon for its smartphone production.
The Indian government has been actively encouraging Chinese smartphone makers to collaborate with Indian companies, aiming to boost local manufacturing and ensure greater Indian ownership. Under recent guidelines, any such joint venture must have at least 51% Indian ownership, ensuring significant domestic control over the mobile phone industry, which has been dominated by Chinese brands.
Following this push, Vivo and Transsion Group announced separate manufacturing joint ventures with Noida-based Dixon Technologies, with Vivo’s JV proposal awaiting final government approval. The Dixon-Vivo venture is expected to function as an original equipment manufacturer (OEM), producing electronic devices, including smartphones, in India.
A senior government official emphasized that Chinese companies should adopt Apple’s model for developing India’s manufacturing ecosystem. “Apple started with Taiwanese firms like Foxconn, Pegatron, and Wistron. Now, Wistron and Pegatron have been taken over by Tata Electronics. This model helps Indian firms scale up, acquire knowledge, and integrate into the global supply chain,” the official said.
The government remains committed to ensuring that India benefits from the expertise of global smartphone makers while fostering domestic growth in the electronics manufacturing sector. As Oppo moves closer to finalizing its partnership, its decision could have far-reaching implications for India’s smartphone production landscape.