LED TV prices are expected to rise 3-4% this month as the cost of panels increased in the global market in addition to an increase in logistics expenses.
This will be the second increase for builders in the past three months. In April, prices were increased due to an increase in operating costs due to increased shipping charges and domestic transportation costs.
Brands such as Panasonic, Haier and Thomson are considering raising prices for LED TVs.
Panasonic India and South Asia President and CEO Manish Sharma said that, in line with the increase in commodity prices, “we are also considering increasing the prices of some products around from 3 to 4%.
Haier Appliances India President Eric Braganza said there was no option but to increase the price.
“The prices of the panels went up. Everyone had no choice but to increase the price. The prices of 32-inch panels, which are widely sold in India, and large screens (such as 42-inch ) have risen. must take a call on the price increase, “he said.
According to him, Haier will also increase prices by 3-4% from June 20.
Super Plastronics Pvt Ltd (SPPL), the licensee of French electronics brand Thomson and US brand Kodak, said an increase of Rs 1,000 to Rs 2,000 is expected in the coming days.
“Both international and domestic freight costs are (at) an all time high now. In addition, panel prices are rising again,†said Avneet Singh Marwah, CEO of SPPL.
According to him, the prices of open cells for screens 40 inches and larger have increased by about 3% in the international market.
The open cell panel is an important part of the manufacture of televisions and covers approximately 70 percent of a television unit. Most of the manufacturers import panels from China.
“Today, sea freight from a container from Shenzhen, China to the port of Nhava Sheva costs us about $ 4,200. A year and a half ago, the cost was only about $ 600. “, he added.
Videotex International, owner of the Daiwa and Shinco brands, said prices for open cells were on the rise again, which would cause prices to increase further in the coming months.
“Open cell prices since June of last year have increased 300-400%… during the second lockdown, there was a temporary drop in prices offered for open cells due to overstocking by trading companies. However, prices are continuously rising again, which will cause further price increases in the coming months, â€said Arjun Bajaaj, International Director of Videotex.
Last year, the government reinstated the import duty on open cells. It had reimposed a 5% tariff on the import of open cells for televisions from October 1, 2020, after being subject to zero duty for a year.
In addition, the government had also placed television imports under a restricted category of free to promote domestic manufacturing. Now, TV importers must apply for a license from the government for imports.
Television is one of the most important segments in the entire home appliance and consumer electronics industry. It represents a volume of nearly 17 million with an estimated sales value of nearly Rs 25,000 crore.
According to a joint report by industry body CEAMA and Frost & Sullivan, the television market is expected to reach 284 lakh units in 2024-25 compared to 175 lakh units in 2018-19.
The open-cell panel and TV chips are mainly imported from China in addition to other markets like Taiwan, Thailand and Vietnam and only last mile assembly is done in India, according to the report.
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