Industry insiders: India's TV prices may rise 3-4% in June

LED TV prices are expected to rise by 3% to 4% this month due to rising panel costs in the global market and increased logistics expenses . This will be the second price increase by manufacturers in the past three months. In April, the price increase was caused by rising operating costs due to increased ocean freight and domestic transportation costs.

Brands such as Panasonic, Haier and Thomson are considering raising prices of LED TVs . Manish Sharma, president and CEO of Panasonic India and South Asia, said : " With the increase in commodity prices, we are also considering increasing prices of certain products by 3-4% . "

Eric Braganza , president of Haier India, said there was no choice but to raise prices. "Panel prices have gone up and we have no choice but to raise prices. Prices of 32-inch panels, which are mainly sold in India , and large screens such as 42 inches have increased. Manufacturers will have to accept the impact of price increases, " he said.

He said Haier will also raise prices by 3% to 4% from June 20.

Super Plastronics Pvt Ltd (SPPL), the brand licensee for French electronics brand Thomson and American brand Kodak, said prices are expected to rise by Rs 1,000-2,000 in the coming days .

“Shipping rates, both international and domestic, are now at an all-time high. Also, panel prices have increased again," said Avneet Singh Malwa, chief executive officer of SPPL.

He said that in the international market, prices of open-cell for screens of 40 inches and above have risen by about 3%. Open-cell panels are an important part of TV manufacturing, covering about 70% of TV units. Most manufacturers import panels from China.

“Now, the cost of shipping a container from Shenzhen, China to Nhava Sheva port by sea is about $4,200. A year and a half ago, the cost was only about $600,” he added.

“Open cell prices have increased by 300-400% since June last year . During the second lockdown , open cell prices temporarily declined due to excess inventory among trading houses. However, the sustained increase in open cell prices will lead to another increase in TV prices in the coming months , ” said Arjun Bajaaj, International Director, Videotex.

Last year, the government reinstated import duties on open-frame batteries. From October 1, 2020, China re-imposed a 5% tariff on imported open-frame televisions, after a 0% tariff the previous year .

In addition, the government has also moved imported televisions from free to restricted category to promote domestic manufacturing. Now, TV importers must apply for an import license from the government.

TV is one of the largest segments in the entire home appliances and consumer electronics sector , with sales of nearly 17 million units. According to a joint report by industry organizations CEAMA and Frost & Sullivan, the TV market is expected to grow from 17.5 million units in 2018-2019 to 28.4 million units in 2024-2025 .

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