Following a strong start to the year, Chinese smartphone maker Vivo is optimistic about its strategy in India and will soon begin manufacturing at its new facility in Greater Noida, the company announced.

The new plant, spanning approximately 169 acres, currently boasts an annual production capacity of 60 million units. According to Vivo's India Impact Report 2023, once fully operational, this capacity could be doubled to 120 million units. The company has not disclosed the timeline for scaling up to full capacity.

In the first quarter of 2024, Vivo emerged as the largest smartphone manufacturer in India by volume, overtaking Samsung with a market share of 16.2%, as reported by the International Data Corporation (IDC).

This new facility is part of Vivo's two-pronged strategy in India, which includes ramping up domestic manufacturing and focusing on "India-centric" products through localised design, camera effects, and overall product experience.

?We have started designing phones that meet our consumers' local tastes and preferences under our 'Design for India' initiative. Our manufacturing facility in Greater Noida reached the milestone of producing over 150 million smartphones till now,? said Jerome Chen, CEO of Vivo India.

These expansions are part of the ?75 billion investment announced by Vivo last year. The company has invested ?35 billion in India so far, primarily in building its manufacturing footprint.

?This facility, once fully operational, will give us the option of doubling our manufacturing capacity, while reinforcing our commitment to Atmanirbhar Bharat,? Chen added.

In 2023, over 99% of Vivo smartphones shipped in India were locally manufactured, a significant increase from the 26% recorded in 2014.

Previously, Vivo moved out of its leased manufacturing facility in Greater Noida, which had an annual capacity of 40 million devices and employed around 10,000 workers. The plant was acquired by Bhagwati Enterprises, the manufacturing unit of Micromax Informatics.

Over the past nine years, more than 15,000 Indians have benefitted from Vivo's manufacturing facility, and the firm claims to have created 200,000 direct and indirect job opportunities in the country. Vivo also plans to increase the localisation of critical components such as OIS, camera modules, memory, and OLED displays.

?In alignment with the Prime Minister?s vision of establishing India as a primary export hub, we have witnessed the progress and growth of the nation and have contributed by exporting smartphones worth around ?4 billion,? Chen said.

Vivo currently operates six flagship stores in India and plans to increase this number to 10 in 2024. The company claims to have over 1,000 distribution partners, 30,000 brand associates, and around 70,000 retail touchpoints across the country.