New Delhi
Amiduction of mobile phones, televisions, refrigerators, and washing machines is at 75 per cent to 85 per cent of original targets, company executives told ET, adding that inventory has piled up with consumers holding back their discretionary spending.
This is the first time since 2017 that the electronics industry has cut production for such a long period of time, stretching from April-May.
Most firms are planning their production on a monthly basis, based on inventory levels, sources reported.
Electronics firms start manufacturing for festive season demand by early August, however, this year the industry is planning to do so in September. India’s festive season starts from Onam in Kerala and continues till Diwali, which is the nation’s largest shopping period as it accounts for 35-40 per cent of annual sales.
The sales of smartphones and televisions have been impacted from January-February this year. The demand for appliances cooled down from mid-May after record high temperatures drove sales of AC and refrigerators. Haier India is running factories at bare minimum capacity, said firm’s president Satish NS, adding that the entry-level products are worst-hit, a report said.
Most firms are selling products at discount to clear inventory and are not increasing rates even as Indian rupee continues to hit new lows.
