TV prices are likely to go up by as much as 10 percent from next month as disrupted supply of open cell television panels – mostly imported from China – has resulted in a shortage of the key television component.
TV panels, which account for nearly 60 percent of the price of a TV unit, are mostly imported from China. While companies had stocked in advance for Chinese New Year break but Coronavirus outbreak has caused disruption in production and supply of many key components. Though some factories have re-opened but they are working with minimal staff.
This, according to industry executives, has pushed prices of panels by almost 20 percent.
One of the executives said it would take at least one quarter for supply and production to return to normalcy, and so prices would also see an impact.
“By March 2020, TV prices will be increased by 10 percent due to the current Coronavirus crisis in China, and there is a major shortage of raw materials along with a sharp 20 percent increase in open cell panel prices,” Avneet Singh Marwah, CEO of SPPL, the exclusive brand licensee of Thomson TVs in India, said. He added that in view of the current market scenario, there could be production loss of up to 30-50 percent.
Echoing similar views, Haier India President Eric Braganza said refrigerator and air conditioners prices could also increase in the coming weeks.
“TV prices will go up by the beginning of March, and refrigerator and ACs will follow. Prices of deep freezers are already up by 2.5 percent,” he said.
Most companies import compressors for AC and refrigerators from China.
A joint report of by industry body CEAMA and Frost & Sullivan had forecast that TV market in India is expected to grow to 2.84 crore units in 2024-25 from 1.75 crore units in 2018-19.
It had also noted that open cell panel and chips used in making TVs are predominantly imported from China and other markets like Taiwan, Thailand and Vietnam, and only the last mile assembly is done in India.
The Indian government had removed import duty on open cell panels used in production of TV sets to lower the cost and encourage local manufacturing, the report had said.
Panasonic India and South Asia President and CEO Manish Sharma also foresees a hike in the TV prices as the cost of open cell (TV panel) in China has gone up by around 3 percent.
“We are already witnessing panel price increase in China. From April onwards, prices could either remain where they are due to better efficiencies or may increase by 3-5 percent if the current trend continues,” he said.
China’s National Health Commission (NHC) in its daily report has on Wednesday said that 136 people died on Tuesday, taking the total death toll to 2,004 so far due to the virus also called COVID-19.
(Edited by Megha Reddy)