Electronics Inventory is Piling Up

- Advertisement -

Consumer electronics and smartphone makers have determined to extend their production cuts till August and defer plans for ramping up output for the festive season by a month, as demand continues to be repressed. Company executives said the production of mobile phones, televisions, refrigerators and washing machines is at 75% to 85% of original targets as inventory has piled up with consumers holding back their discretionary spending due to overall inflation. This is the first time in the last five years that the industry has cut production for such a long stretch, stretching from April-May.

“Production is cut by 20-25% over the original plan and these cuts will continue till August since inventory has piled up. Festive production will be postponed by a month,” said Godrej Appliances business head Kamal Nandi. A senior executive with one of the country’s largest electronic goods contract manufacturers said brands have become extremely cautious and continue to curtail production of smartphones, televisions and lighting products. Most companies are now planning their production every month depending on inventory levels.

The electronics industry usually begins festive season production by early August but will do it in September this year. The festive season, starting from Onam in Kerala in end-August and continuing till Diwali, is the country’s largest shopping period accounting for 35-40% of annual sales. Haier India president Satish NS said the company is running factories at bare minimum capacity. He said the worst affected are entry-level products where the consumer segment is badly impacted due to inflation. “We expect a pickup in sales from August due to Onam and Independence Day sales. There is sufficient inventory for these days. We will first start with festive production of the mid-and premium range which is not much affected.”

- Advertisement -

Mobile phone market researcher Counterpoint Technology research director Tarun Pathak said consumers are holding on to their existing devices. “While footfall in stores has come down, it has gone up in service centres with people preferring to repair their existing handsets instead of buying new ones. Demand is likely to improve around the festive season,” he said.

Top executives at consumer goods makers have flagged inflation as a concern for demand and the overall Indian economy, though they are optimistic there will be a recovery from the end of the July-September quarter driven by a good monsoon, higher Agri income, effect of the recent cooling down of food and commodity inflation, and improvement in macroeconomic indicators.


 

- Advertisement -

Most Popular Articles

Nishchay Pandey
Nishchay Pandey
Bioengineer with a knack for writing, I love IoT, Open-source and creativity.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

“Capitalise On ‘China Plus Two,’ Where Products With Higher Value Addition Become The Focus”

0
EPIC Foundation aims to transform India into an electronics hardware product nation by collaborating with governments, universities, design houses, and startups. In a conversation...

Exclusive: Electric Two And Three Wheelers In Focus For AMP 2030

0
It seems that the Indian government is going to focus on electric two— and three-wheelers. Taking these beyond Tier 1 and 2 Indian cities...

Report Suggests India’s EV Sales Will Surge, Rising 66% In 2024

0
In 2023, sales of electric vehicles (EVs) in India almost doubled due to increased consumer interest, government actions, better infrastructure, and climate change worries....

Buzz

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...

Scoop: Finayo Plans Rs 100 Cr Financing Fund For EV Dealerships

0
While EV finance is improving in Bharath (Tier 2, 3, 4 cities, and rural India), it is still one of the biggest challenges! Can...

HubSpot Expands Presence In India With New Bengaluru Office

0
With a focus on local engagement and accessibility, HubSpot aims to tap into India's diverse talent pool while catering effectively to the Indian market. HubSpot...

Important Sectors

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...

Scoop: Finayo Plans Rs 100 Cr Financing Fund For EV Dealerships

0
While EV finance is improving in Bharath (Tier 2, 3, 4 cities, and rural India), it is still one of the biggest challenges! Can...

Macquarie Group To Invest $1.5 Billion In Indian Fleet Electrification With Vertelo Launch

0
Vertelo has entered into a long-term lease agreement with Tata Motors, committing to purchase up to 2000 electric cars within the next three years....

Log9 Launches Amphion And Nexmile To Strengthen EV Landscape

0
The company is focused on tackling key issues in the commercial electric vehicle (EV) industry, such as financing, data analytics, charging infrastructure, and energy...
Sona Comstar

Sona Comstar Launches Mexico Plant For North American EV Demand

0
The new facility, established to address the increasing demand for premium driveline solutions for BEVs in North America, will focus on manufacturing differential assemblies...

Manufacturing

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...
Sona Comstar

Sona Comstar Launches Mexico Plant For North American EV Demand

0
The new facility, established to address the increasing demand for premium driveline solutions for BEVs in North America, will focus on manufacturing differential assemblies...

Sterling Tools Inks MoU With Yongin For EV Components Facility

0
Sterling Tools announced that this strategic partnership is anticipated to bring in Rs 250 crore in business over the next five years. This collaboration...

Tata Elxsi-Renesas MCU Boosts EV Cost Efficiency And Market Speed

0
The Motor Control Unit's modular, scalable design facilitates integration across various EV applications, reducing time to market by 40%, lowering design and development costs...

Ramkrishna Forgings To Supply Powertrain Parts To Top US Electric Carmaker

0
Indian producer of rolled, forged, and machined products enter the US electric vehicle market for the first time. Ramkrishna Forgings, an Indian supplier of rolled,...