Chinese smartphone company Vivo planned to sell a 51% stake in its Indian business to the Tata group. However, talks have broken down due to objections from Tata’s partner, Apple. Vivo wanted to make its Indian operations more local after facing increased scrutiny from the Indian government. Selling a majority stake to Tata was part of this plan.
Apple and Tata are working together to manufacture iPhones in India, operating from a Wistron plant in Bengaluru. An insider said, “For Apple, any deal of the Tata group with Vivo would mean partnering with a competitor, which likely caused the talks to fail.”
The Tata group has denied this development. Many Chinese smartphone companies are partnering with local businesses in India to comply with government regulations and benefit from the Make-in-India initiative.
This helps them get easier access to funds, visas, and protection from regulatory issues. For example, SAIC sold a majority stake in MG Motor to JSW Group, and Transsion Technology sold a 56% stake in its Indian subsidiary to Dixon Electronics.
With Apple and Tata expanding their local manufacturing, the Vivo deal could have disrupted their relationship. Tata recently secured an Apple contract and is looking to grow in the global smartphone manufacturing market, competing with Foxconn, Pegatron, and Wistron.
Vivo, a leading global smartphone brand, is known for its innovative technology and stylish designs. Established in 2009 in China, Vivo quickly expanded its presence to various international markets, including India. The company focuses on providing high-quality smartphones with advanced features like cutting-edge camera technology, powerful processors, and sleek aesthetics.
Vivo’s commitment to research and development has led to the introduction of several groundbreaking technologies, such as in-display fingerprint scanning and pop-up camera mechanisms. With a strong emphasis on customer experience, Vivo continues to build a loyal user base worldwide by offering reliable products at competitive prices.
