Chinese smartphone contract manufacturers such as DBG and BYD are reportedly expanding or re-establishing their operations in India, even while operating on thinner margins compared to domestic producers. The move comes as India-China relations show signs of easing.

Although Indian contract manufacturers continue to dominate the market, Chinese firms are witnessing a rise in order volumes from Chinese smartphone brands that rely on original design manufacturers (ODMs).

At present, BYD operates a facility in Sriperumbudur, Tamil Nadu, while DBG runs a manufacturing plant in Haryana.