Xiaomi expands local production in India and will work with Dixon to produce mobile phones

CTOnews.com, May 31 (Reuters)-Dixon Technologies, India's second-largest electronics maker, said on Wednesday that it would work with Xiaomi's Indian arm to produce and export mobile phones in India and explore ways to strengthen the local parts ecosystem, sending Dixon's shares up 4%.

CTOnews.com noted that in 2018 Xiaomi announced a partnership with Dixon to produce "made in India" Xiaomi televisions in India. In addition, a few days ago, Xiaomi India announced plans to start producing wireless audio products in India in partnership with electronics manufacturer Optiemus.

To become a global power in the electronics supply chain, India has been encouraging global companies to invest more in local manufacturing.

Earlier in March, Muralikrishnan B., president of Xiaomi India. The company will open more stores outside its existing network of 20,000 retail partners and promote local procurement of mobile phone parts to reduce costs, it said.