BBK Group, China’s largest mobile phone manufacturer, has partnered with Indian manufacturers Dixon Technologies and Karbonn Group to produce its popular smartphone brands Oppo, Vivo, and Realme. This collaboration comes as BBK Group strives to take advantage of India’s Production-Linked Incentive (PLI) scheme and adhere to the Government of India’s regulations requiring the involvement of local partners.
Despite previous actions by the Indian government against Chinese smartphone companies, Oppo and Vivo have already established large manufacturing units in India, producing their entire range of BBK Group brands such as Oppo, Vivo, Realme, OnePlus, and iQoo. However, expanding their capacity directly has become increasingly challenging due to heightened scrutiny and various legal issues faced by Chinese smartphone companies in recent years.
By partnering with contract manufacturers like Dixon Technologies and Karbonn Group, who have applied for PLI benefits, Oppo and Vivo aim to enhance their competitiveness in the Indian market. This move is particularly crucial since their competitor Samsung is a PLI beneficiary. According to a source, BBK Group, with revenue of Rs 81,870 crore in 2022-23, continues to lead the Indian smartphone market.
The Indian government has been actively encouraging Chinese mobile phone firms to collaborate with local partners for manufacturing and distribution, as well as appointing Indian executives in key management positions. The objective is to increase the value-addition activities of Chinese companies in India, including localized component production.
Market tracker Counterpoint Research data reveals that Vivo, Oppo, and OnePlus have all experienced an increase in market share in 2023 compared to the previous year, while Xiaomi and Realme have shown year-on-year improvements in the October-December quarter of 2023.
BBK Group has two primary sales divisions in India: Oppo Mobiles India, responsible for Oppo, OnePlus, and Realme brands, and Vivo Mobile India, which handles Vivo and iQoo. The financial report of Oppo Mobiles India states a 9% decrease in sales, reaching Rs 51,994 crore in 2022-23 due to challenging market conditions. In contrast, Vivo Mobile India experienced an 11% increase in sales, amounting to Rs 29,875 crore.
This collaboration between BBK Group and Indian manufacturers not only aligns with the Indian government’s vision for increased localization in the mobile phone industry but also presents an opportunity for Oppo, Vivo, and Realme to strengthen their position in the highly competitive Indian smartphone market.
FAQ Section:
Q: Who has BBK Group partnered with to produce its smartphone brands?
A: BBK Group has partnered with Indian manufacturers Dixon Technologies and Karbonn Group.
Q: Why did BBK Group collaborate with these Indian manufacturers?
A: BBK Group collaborated with Dixon Technologies and Karbonn Group to take advantage of India’s Production-Linked Incentive (PLI) scheme and comply with Indian government regulations requiring the involvement of local partners.
Q: What smartphone brands are produced by Oppo and Vivo in India?
A: Oppo and Vivo produce their entire range of BBK Group brands, including Oppo, Vivo, Realme, OnePlus, and iQoo, in India.
Q: Why did Oppo and Vivo choose to partner with contract manufacturers?
A: Oppo and Vivo partnered with contract manufacturers to enhance their competitiveness in the Indian market, particularly since their competitor Samsung is a PLI beneficiary.
Q: What is the objective of the Indian government in encouraging collaboration between Chinese mobile phone firms and local partners?
A: The objective is to increase the value-addition activities of Chinese companies in India, including localized component production.
Q: How have Vivo, Oppo, and OnePlus performed in the Indian market?
A: Market tracker Counterpoint Research data shows that Vivo, Oppo, and OnePlus have experienced an increase in market share in 2023 compared to the previous year.
Q: What are the primary sales divisions of BBK Group in India?
A: BBK Group has two primary sales divisions in India: Oppo Mobiles India, responsible for Oppo, OnePlus, and Realme brands, and Vivo Mobile India, which handles Vivo and iQoo.
Q: What were the sales performances of Oppo Mobiles India and Vivo Mobile India?
A: Oppo Mobiles India experienced a 9% decrease in sales, while Vivo Mobile India saw an 11% increase in sales.
Key Terms/Jargon:
– BBK Group: China’s largest mobile phone manufacturer.
– Production-Linked Incentive (PLI) scheme: A scheme introduced by the Government of India to provide incentives to manufacturers for production and manufacturing in India.
– Oppo: A smartphone brand under BBK Group.
– Vivo: A smartphone brand under BBK Group.
– Realme: A smartphone brand under BBK Group.
– OnePlus: A smartphone brand under BBK Group.
– iQoo: A smartphone brand under BBK Group.
– Counterpoint Research: A market research firm that tracks the mobile phone market.
Suggested Related Links:
– BBK Group Official Website
– Oppo Official Website
– Vivo Official Website
– Realme Official Website
– OnePlus Official Website
– Counterpoint Research Official Website
The source of the article is from the blog queerfeed.com.br