According to the report, Vivo India was trying to sell its 51 percent stake to Tata Group. This would have made it easier for the company to operate in India and also provided funds for expansion. But this is not happening. The report cites the manufacturing partnership between Tata and Apple as the reason for this.
Tata Group has acquired Wistron India’s Bangalore unit and Tata has a role in iPhone manufacturing. If Tata Group buys a stake in Vivo India, it will be in direct competition with Apple, which will affect both companies.
A source close to the matter told the Times of India that this is the main reason (Tata’s partnership with Apple) that thwarted its plans. Any deal by Tata with Vivo would have been a partnership with a competitor. This is probably why the talks between Tata and Vivo broke down. There is little chance of rethinking it ‘at the moment’.
In other news related to Vivo India, the company’s performance in India continues to be good. The latest report of Counterpoint states that Vivo is ranked second in the country in terms of smartphone shipments in the second quarter of 2024. Its shipment stood at 18.8 percent, which was 17.4 percent during this period last year.
