Vivo expansion in India is about to accelerate the growth of the Indian smartphone ecosystem
Based on recent reports, India is about to have over 1 billion smartphone users by 2026 with rural areas driving the sale of internet-driven phones. Based on reports by Deloitte, India had 1.2 billion mobile subscribers back in 2021, out of which about 750 million are smartphone users. The country is poised to be the second-largest smartphone manufacturer in the next five years. Tapping into this potential is the smartphone producer, Vivo. The company is committed to the Indian market. It is maintaining timelines for its manufacturing capacity expansion plans despite an ongoing investigation by the authorities over alleged tax evasion and money laundering.
The company has commented that it plans on staying faithful to the Indian market and will invest INR 3,500 crores by 2023 into the expansion of its manufacturing capacity. The new and proposed facility will add 40,000 more jobs. The company will primarily be used to meet the demands of India’s domestic industry and will empower its fuel exports out of India. Vivo also hopes to start the export by this year itself. The new manufacturing wing will add to the total production output of 60 million units annually.
The smartphone giant is aiming to strengthen its local sourcing of components with its investment. The smartphone maker aims to touch 95 percent of the country’s localization. The INR 3,500 crore investment plan is basically a part of the larger 7,000 crore pack that aims to connect 65 percent display localization and up to 75 percent localization in the charger market. It targets to reach 120 million units annually with the planned investments.
Vivo has almost 10 R&D centers around the world, but unfortunately, there has been none in India until now. The company has around 400 million users across the world and 7 production units. It also claims that it has over 650 service centers owned exclusively by the brand. Vivo also has over 600 exclusive stores. The Chinese smartphone maker employs around 1.40 lakh people in India across all units owned by it and thus affecting the lives of nearly 1.6 million families in a better way.