Vivo, which is China's third largest smartphone manufacturer, is looking to set up the manufacturing facility at Gurgaon in three-to-four years.
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The Shenzhen-headquartered company, entered India in December last year, opened its first exclusive brand store in Hyderabad on Wednesday.
Tracy Chen, general manager, Vivo India, told reporters on the occasion that India is a key market for the company.
"Vivo has shipped 40 million smartphones from China last year. We hope to sell a similar number of phones in India in the next few years," he said.