Vivo to start operations at Greater Noida factory by year-end

Chinese smartphone maker Vivo plans to start operations at the new factory in Greater Noida by year-end, and once fully operational, it will double its manufacturing capacity, a senior official at the company said

The company plans to strengthen its focus on India-centric products by localising design, camera effects and overall product experience and has said that it will empower Indian leaders to spearhead Indian operations

“Our manufacturing facility in Greater Noida reached the milestone of producing over 150 million smartphones till now. We are proud to be starting our operations at a new manufacturing facility. This facility, once fully operational, will give us the option of doubling our manufacturing capacity, while reinforcing our commitment to ‘Atmanirbhar Bharat’,” Jerome Chen, Chief Executive Officer, Vivo India, said.

10 years in India

The company that completes 10 years in India this week, said it has invested ₹3,500 crore so far, and manufactured over 150 million smartphones till now, including exports worth ₹400 crore since 2022. According to sources, the company is expected to invest around ₹3,000 crore in the upcoming facility and expansions.

“The past decade focused on growth and consolidation in the fierce Indian market. In the next decade, we will focus on localising multiple areas, including manufacturing, the local value chain and distribution. We have started designing phones that meet our consumers’ local tastes and preferences under our ‘Design for India’ initiative,” Chen said.

He said Vivo was constantly increasing localisation of critical components like optical image stabilisation, camera module, memory and OLED display, and aims to introduce new technology in localisation.

“The next decade holds great promise for India as it emerges as a powerhouse of global economic growth...the government has made substantial strides in bolstering infrastructure, enhancing governance, fortifying the financial sector and fostering progressive policies. As a result, market is witnessing premiumisation, accompanied by rapid technological adoption and an escalating demand landscape,” Chen said.

Vivo India has more than 70,000 retail touchpoints, more than 650 Vivo exclusive stores and over 650 service centres, and generated around two lakh jobs in India, directly and indirectly.

Top brand

With 19 per cent share, Vivo was the top brand in the first quarter 2024, followed by Xiaomi, which also witnessed a 19 per cent share, and Samsung was third with 18 per cent market share, as per Counterpoint Research. For the first time, Vivo led the market by volume in a single quarter.

According to Counterpoint, India’s smartphone shipments in Q1 (January-March) grew 8 per cent year on year in terms of volume and 18 per cent in terms of value. Volume growth was primarily driven by healthy inventory levels and the low base of Q1 2023.