The local arm of Japan’s Leading Consumer Electronics Maker, Sony India is gearing up to set up “Make in India” for smartphones and televisions rather than relying largely on imports like it did earlier in view of government’s move to increase taxes on the overseas product.
As reported by Sunil Nayyar, Company’s Managing Director, Sony’s parent headquarters in Tokyo is speculating on its next move which will either involve expansion of third-party manufacturing or will include setting up of plants in India.
Nayyar who is also the first Indian to lead local operations of the company further added,
As of now, we are happy with our third-party manufacturing and quality of products which has negligible return rates. A large portion of our portfolio will move towards local production which will be a win-win situation for the brand, consumers and government.
Meanwhile, Government has increased duties on import duties on completely built smartphones and television sets to 20% from 15% and 10% respectively. Additionally, the import duties on components for these both products have also been increased.
To recap, Back in 2015 Sony started manufacturing of entry-level TV sets in the Foxconn Plant. In 2017, Sony extended the partnership to manufacture two mid segment smartphone models.
Coming to tax duties in India, a 15% duty is levied on finished LED TV panels imported for local assembling while 5% is levied on open cell TV panels which require further assembling before being used for production.
Over time, Sony has also increased local production of TV units up to 55 inches and will expand it to two more models as informed by MD. Interestingly, the company has refrained itself from increasing prices of TV sets despite an increase in import duties as it wants to stick to its loyal customer base keeping the burden away for them in the process.