Oppo Under Pressure to Seal India Manufacturing Deal

Chinese smartphone giant Oppo is under increasing pressure to secure a local manufacturing partnership in India, as it remains one of the few Chinese brands without a domestic tie-up. The Indian government’s "Make in India" initiative and stricter Foreign Direct Investment (FDI) regulations have pushed Chinese smartphone makers to localize production. While brands like Xiaomi, Vivo, and Realme have already partnered with Indian Electronics Manufacturing Services (EMS) firms, Oppo has yet to finalize a similar arrangement, raising concerns about its long-term strategy.

To navigate regulatory scrutiny and import restrictions, Oppo has begun manufacturing smartphones at its Greater Noida facility through a joint venture with Bhagwati-Huaqin, which previously operated under Vivo. This move aligns with the government’s push for localized supply chains, ensuring compliance with evolving regulations. However, Oppo continues discussions with multiple EMS providers, indicating that it is still exploring a broader, long-term partnership with trusted Indian firms like Dixon Technologies, Lava International, or Optiemus Electronics.

Establishing a strong Indian manufacturing presence is crucial for Oppo to reduce reliance on imports, lower production costs, and maintain a competitive edge. Competitors such as Xiaomi and Vivo have already diversified their manufacturing models, with Xiaomi partnering with Dixon Technologies and Vivo increasing its India plant investments. These moves not only streamline operations but also build stronger government relationships, ensuring smoother business operations.

The Indian government has intensified scrutiny of Chinese firms, focusing on financial practices, tax compliance, and ownership structures in the electronics sector. Oppo’s current efforts with Bhagwati-Huaqin demonstrate its commitment to aligning with local regulations, but a more substantial Indian partnership would further secure its market presence and regulatory approval.

Oppo’s decision to start production in partnership with Bhagwati-Huaqin is a significant step toward localization. However, to solidify its position in India’s highly competitive smartphone market, securing a long-term collaboration with a major Indian EMS firm will be essential for regulatory compliance, operational stability, and sustainable growth.