New Delhi: Consumers will need to brace themselves for price hikes and may see fewer choices on the retail shelves in terms of models for certain appliance products in the coming months.
As Indian consumer durable makers grapple with supply chain disruptions due to the novel coronavirus outbreak, an immediate impact is likely to be more evident in segments such as air-conditioners and LED TVs by next month.
TV prices are likely to go up by as much as 10 per cent 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 per cent 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 per cent.
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 per cent due to the current Coronavirus crisis of China, there is a major shortage of raw materials along with a sharp 20 per cent increase in open cell panel prices,” Avneet Singh Marwah, CEO of SPPL – which is 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 per cent.
Echoing similar views, Haier India President Eric Braganza said refrigerator and airconditioners 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 per cent,” 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.