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Samsung Electronics May Stop TV Production in India
Due to Tariffs on Parts
Samsung Electronics May Stop TV Production in India
  • By Michael Herh
  • September 5, 2018, 11:01
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Samsung Electronics is considering withdrawing TV production lines from India as the Indian government began to impose tariffs on TV parts.

Samsung Electronics is considering withdrawing its TV production lines in India. as the Indian government began to impose tariffs on TV parts. 

According to industry watchers and foreign news reports on September 4, Samsung Electronics is considering a gradual withdrawal of its TV production lines from the Chennai plant in India. The Indian TV plant produces about 300,000 units a year. The Korean TV giant may choose to produce this volume in Vietnam for exports to other countries. Samsung Electronics established a subsidiary in India in August 1995 and has produced TVs and home appliances at its Chennai plant since 2007.

Samsung’s plan to close down the Chennai TV plant contrasts with the expansion of the Noida plant, which produces mobile phones. Samsung doubled the size of its Noida plant in July, two months ago, by investing 49.15 billion rupees. The factory's monthly mobile phone production capacity swelled from five million units to ten million units.

The Indian government’s strong “Make in India” policies prompted Samsung Electronics to consider the withdrawal of its TV production line which has been in operation for more than a decade. Since 2014, Indian Prime Minister Modi has focused on promoting India’s manufacturing industry. As a result, tariffs on imported finished goods have been on the rise.

The Indian government decided to strap a tariff of 20 percent on import TVs and 15 percent on fully assembled LED panels. It also decided to levy a 5-percent tariff on open-cell panels. Such tariffs will definitely lead to higher TV prices in India. In fact, some TV manufacturers including Panasonic raised their TV prices in India.