Tata Electronics Mulling To Manufacture Oppo, Xiaomi Phones In India

Indian conglomerate Tata Electronics is exploring manufacturing partnerships with Chinese smartphone makers Xiaomi and Oppo, expanding beyond its current role as an Apple iPhone supplier, according to report from Economic Times (ET).

Tata May Manufacture Components

Tata Electronics aims to achieve greater scale in the electronics manufacturing services (EMS) sector. The company has initiated discussions with major Chinese smartphone manufacturers, including Xiaomi and Oppo, regarding component manufacturing. While Vivo was initially part of these discussions, that partnership appears unlikely to materialise following Vivo's recent joint venture (JV) announcement with Dixon.

"Tata Electronics has realised that in order to be a top player in the electronics manufacturing services (EMS) ecosystem, it has to focus on scale now," a source was quoted as saying.

"They (Tata Electronics) have been in talks with the top Chinese smartphone players including Xiaomi and Oppo to start making components for them," the person added. 

"They were initially also in talks with Vivo, but it is unlikely that the Vivo partnership will go through as they have entered into a joint venture with Dixon."

Tata Following Foxconn's Footsteps

Currently manufacturing iPhone enclosures, Tata Electronics is adopting a strategy similar to Foxconn's, seeking to enhance its capabilities by producing more sophisticated components such as camera and display modules for smartphone manufacturers.

The recently announced joint venture between Vivo and Dixon will focus on manufacturing electronic devices, including smartphones. According to regulatory filings, Dixon will maintain a 51 per cent majority stake, with Vivo India holding the remaining 49 per cent.

Tata Electronics' expansion beyond Apple is expected to create more competition with Dixon, the Noida-based manufacturer. 

The report added that smartphone companies might use Tata's market entry to their advantage, particularly as Dixon's growing market presence affects pricing dynamics.