Chinese mobile electronics manufacturers are expanding their footprint in India amid signs of easing tensions between the two countries, industry executives told the Economic Times. Despite thinner profit margins compared with local players, firms such as DBG and BYD are ramping up production and rehiring staff to meet growing demand from Chinese smartphone brands, including Xiaomi, Oppo, and Vivo.
The outlet, citing import-export data from Volza, reported that DBG's share of India's contract manufacturing market climbed to 21% in the quarter ended September 2025, up from 13% in the first quarter. BYD's overall share remained steady at around 7%, though it has increased its share of production for major clients such as Xiaomi. DBG operates a plant in Haryana, while BYD runs a facility in Sriperumbudur, Tamil Nadu.
Both firms are expanding their production for Chinese original design manufacturers (ODMs) Longcheer and Huaqin, which have joint ventures with Indian contract manufacturers Dixon Technologies and Bhagwati Products (Micromax), respectively.
DBG's production for Longcheer surged nearly fivefold—from INR540 million (approx. US$6.15 million) in June to INR2.44 billion in September—while Dixon's output for Longcheer grew around 10% to INR6.67 billion in the same period. Industry experts said that while Indian electronics manufacturing services (EMS) companies continue to hold a dominant share due to government incentives under the production-linked incentive (PLI) scheme, Chinese EMS players are gradually regaining ground, leveraging long-standing relationships with Chinese brands and supply networks in China.
Dixon, India's largest smartphone contract manufacturer, continues to command a 53% market share, though down from 64% in the first quarter of 2025. Managing director Atul Lall said the company aims to raise its market share to 60-65% in fiscal year 2026. "In the Android space, Dixon currently has all major brands as customers. Chinese players are utilizing their existing capacities, but will be limited in expanding them. As a result, the Indian EMS sector will continue to have an advantage," he said. Dixon is expanding capacity across India, building deeper partnerships with global ODMs, and strengthening its component ecosystem.
The expansion of Chinese EMS operations coincides with a gradual warming of China-India relations after years of tension. On October 26, IndiGo launched the first direct commercial flight between India and mainland China since the pandemic, connecting Kolkata and Guangzhou. Additional routes between New Delhi, Shanghai, and Guangzhou are set to open in November, reducing logistics time for businesses.
Observers said the renewed connectivity signals improving commercial ties, which could facilitate trade and manufacturing cooperation. While political and regulatory challenges remain, both countries appear to be cautiously reopening channels for economic engagement — a development that could reshape the dynamics of India's fast-growing electronics manufacturing sector.
Article edited by Jack Wu
