Tecno India, Dixon Partner to Build Components, Boost R&D

• Tecno and Dixon Technologies have partnered to strengthen domestic electronics manufacturing under the ₹23,000-crore ECMS 2.0 scheme.
• A new R&D center in Noida will focus on localized AI development and regional smartphone design.
• Tecno targets 200% year-on-year growth in the ₹15,000–₹20,000 5G smartphone segment, driven by rural markets.

Tecno, a mid-range smartphone brand under Transsion, recognizes that availability of locally manufactured electronics components is essential to helping foster innovation in India and keeping it sustainable over the long term.

In this vision, Under the Central government Electronics Components Manufacturing Scheme (ECMS) 2.0 Tecno partnered with a local contract manufacturer, Dixon Technologies, to build a domestic electronics components ecosystem together.

The ECMS Scheme has budget framework of over ₹23,000 crores and objective of stimulating local production of sub-assemblies and major components like display units, camera modules, Li-ion cells, passive and multilayered PCBs etc. According to Union IT Minister Ashwini Vaishnaw, over 70 applications have been received in this regard, of which a very good proportion belong to small and medium enterprises (SMEs).

Managing Director of Dixon Technologies Atul Lall recently confirmed to analysts in the earnings call that the JV partnership with Transsion will take domestic manufacturing further. Meanwhile, Tecno is involved in localizing AI capabilities to enhance smartphone design and user experience.

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He said, "We are emphasising profitability and volume at the same time. Backed by a strong global supply chain, we are aiming at further cost efficiency, and we will launch smartphones across all price points, including a ₹80,000 Tecno device".

To further this innovation, Tecno has set up a new R&D center in Noida with about 60 engineers working on AI features and regional product designs for India, Bangladesh, and Nepal. Talapatra added that Tecno is aiming for 200% growth year on year in the ₹15,000 to ₹20,000 5G smartphone segment, driven primarily by rising demand in rural markets.

Transsion operates three brands in India: iTel (budget), Tecno (mid-range), and Infinix (premium), addressing diverse consumer segments across the country.

 Arijeet Talapatra, CEO, Tecno India, "The electronic components manufacturing scheme supports local innovation, which is critical to our long-term success in India. We plan to continue to expand our local research & development and production capabilities to tailor our products to the needs of Indian consumers".

"We are strategically intensifying our focus on the ₹15,000 to ₹20,000 smartphone segment, which is currently the fastest-growing category in India, to cater to consumers seeking premium features at accessible prices. The demand for affordable yet feature-rich 5G phones is also growing rapidly in tier-2 and tier-3 cities", he added.