TV Prices Have Soared Up By 300% In The Last 8 Months
New Delhi: The per unit cost of TVs will go up by at least Rs 2000-3000 starting April 1st, 2021.
In the last eight months alone, TV prices have soared upto 300% causing a net escalation of almost INR 3000-4000 per unit.
Besides the prices of TV panels (open cell)which have been on a continuous rise to the tune of more than double, mainly due to supply shortage by global vendors, other factors that are leading to this surge are – a hike in custom duty, rise in cost of input material like copper, aluminium and steel and an increase in ocean and air freights charges, that is collectively set to put the prices on fire.
Owing to this, the local TV manufacturers have been constantly appealing the government to take up TV manufacturing under the PLI Scheme.
TVs comprise a large chunk of the consumer electronics market with over 85% market penetration rate. It is preempted that there will be a boom in the television manufacturing sector, including global brands from across the world , that will now look to partner with local manufacturers. If the industry is looking to establish a global competitiveness and gain cost advantage, then PLI must be extended to TVs also.
Avneet Singh Marwah, CEO , Super Plastronics Pvt. Ltd., a leading TV manufacturing firm and India Licensee of Thomson and Kodak smart Tvs in India, says, “Currently only a handful of Chinese and Taiwanese firms control the flat-panel market and that allows them to raise prices, which hurts our costing. The government must seriously evaluate, bringing TV manufacturing under the PLI scheme, as this will make the Indian TV industry more competitive on the global stage and help pass the cost benefit to the consumer , directly”.
“How the government banned the import of TVs last year, to push and help the domestic industry, likewise PLIS for the TV sector will immensely benefit the local manufactures in both scaling up operations and generating more employment opportunities. In case the government remains unable to do so, the per unit cost of TVs are sure to hike up further by at least Rs 2000-3000 starting April 1st, 2021. This can seriously hurt the consumer buying sentiment, further crashing the demand altogether, making economic recovery of the sector rather impossible”, he added.