TV prices in India will rise from April because the open-cell panels get costlier in the global market by up to 35% in the past month.
Brands like LG have already raised LEDs’ prices. Other brands, including Haier, Panasonic & Thompson, will increase LEDs’ prices from April 2021.
“Panel prices are rising continuously, and so are the prices of TVs. It is likely that TV prices may increase further by April.”Manish Sharma,Panasonic India and South Asia President and CEO
When being asked again about the quantum on the increase,
“Seeing current trends, it might go up for 5-7 percent more by April.”Manish Sharma
President Eric Braganza of Haier Appliances India said there is no other choice than to increase the LEDs’ Prices.
“The prices of open-cell have gone up tremendously, and the trends are that it would keep on increasing,”President Eric Braganza
“if that continues, we would have to continuously increase prices.”Braganza
The open-cell panel is the central part of TV manufacturing, and it covers around 60 percent of the unit.
Until being delivered to market for sale, businesses must manufacture and add value to television panels that are imported in an open-cell state.
“From the past eight months, there has been a month-on-month increase in panel prices, we have witnessed more than 350 percent spike in LED TV panels. Globally, panel market has slowed down. Despite that, there has been an increase of 35 percent in the past 30 days.”Avneet Singh Marwah, SPPL Chief Executive Officer, Brand licensee for French Electronics brand Thompson and US-based brand Kodak
He added that per unit TV’s cost would go up by atleast 2000-3000 rupees starting from April.
While South Korean brand LG said they would not increase the prices of its TV panels.
“We are not going for any price increase now for TV. We have already increased the prices by around 7-4 percent in January and 3 percent in February because of the hike in panel prices,”Vijay Babu, LG Electronics India vice-president (Home Appliances)
The government should bring TV manufacturing under the production-linked incentive (PLI) scheme, which will make the Indian TV industry more competitive on the global stage, Marwah added.
Last Year, the import duty on open-cell had restored by the government. It had re-imposed 5 percent customs duty on importing open-cells for TVs from October 1, 2020, after having nil duty for a year.
Besides, the government had also put imports of TV under restricted category from free to promote domestic manufacturing. Now, the TV importer has to seek a licence from the commerce ministry’s DGFT.
TV being the most prominent parts of the entire realm of an appliance and consumer electronics, accounting for a volume of almost 17 million with an estimated sale value of almost Rs 25,000 crore.
According to a joint report by the industry body CEAMA and Frost & Sullivan, the TV market will grow to 284 lakh units in 2024-25 from 175 lakh units in 2018-19. They further added the open cell panel and TV chips are mostly manufactured from China, with some from Taiwan, Thailand, and Vietnam, and that only the final assembly is performed in India.