NEW DELHI: Chinese smartphone maker<\/a> Vivo<\/a> said that it will invest Rs 1600 crore more by 2023 as part of its total proposed investment of Rs 7500 crore to significantly expand local manufacturing capabilities to kick off exports to other countries.
\"We will begin exports from India manufacturing units in 2022. We are currently evaluating the demand globally. ,” Paigham Danish<\/a>, Director Business Strategy, vivo India<\/a> told ET. “The new investment will also double our annual production capacity from 120 million in future. India will be one of the export hubs for us globally.”
Vivo, which has seven manufacturing facilities globally, will immediately increase its annual production capacity from 50 million to 60 million units in 2022.
Vivo already made Rs 1900 crore investment in India till 2021 towards establishing and expanding its manufacturing unit.
Danish said that Vivo’s new manufacturing facility in Greater Noida is also being set up as part of the investment. The brand had previously acquired 169 acres of land for the new facility.
The handset brand will also increase local sourcing of components like chargers and displays. “We want the entire component ecosystem to grow in India for our products. Vivo plans to invest in local sourcing.”
Danish said that Vivo will increase charger localization to 75% by 2024 from the current 60% and also plans to source 65% displays locally by 2023.
He said that 98% of the brand’s level 2 offline distributors are Indians.
Notably, the Indian government is already in a process to push smartphone makers like Oppo and Vivo to stop operating through their Chinese partners for distribution, and leverage local companies instead, ET reported in October.
Danish, however, didn’t offer any update on the issue of Chinese distributors.
The executive claimed that Vivo held 25% market share in 2021 while its average selling point or ASP grew 20% in offline retail. The company has 70,000 retailers in India.
As per IDC data, Vivo was at the third position in 2021 with a shipment decline of 6% YoY, though it continued to lead with a 28% share of offline channel shipments in 2021.
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