OnePlus Two
OnePlus' India factory will be able to manufacture 500,000 smartphones per month at peak capacity. OnePlus

Chinese handset maker OnePlus is moving some of its manufacturing to India. The company revealed Monday that it has partnered with Foxconn to build its smartphones in India, according to IBN Live.

The move comes as OnePlus looks to capitalize on one of its largest markets. The company has sold 250,000 units of its OnePlus One in India and 15,000 of its latest handset, the OnePlus 2, during an open sale on Amazon India, according to the Indian Express. Normally, the handsets are available for purchase only on an invitational basis.

"India being one of our biggest markets worldwide, we are committed to a long-term sustainable growth path,” OnePlus founder and CEO Pete Lau said in a statement. “This move will strengthen our presence and help us step up momentum in India.”

As part of its initiative, OnePlus’ handsets will be manufactured by Foxconn at its Sri City factory, about 35 miles north of Chennai on India's southeastern coast. The facility is expected to create 1,000 jobs and at peak production will make 500,000 units per month.

India is the third-largest smartphone market, where an estimated 118 million smartphones are expected to be sold this year, according to Strategy Analytics. By 2017, sales are expected to grow to 174 million units, bumping the U.S. down to third place. For now, China is by far the largest smartphone market, with 405 million units sold last year. But annual smartphone sales growth in the country is expected to slow to 1.2 percent, compared with 19.7 percent in 2014, according to IDC.