Samsung Electronics has decided to resume TV production in India in partnership with a local home appliance company. The Korean company shut down its Indian TV production line due to a tariff increase 15 months ago.
Indian media outlests said on Jan. 5 that Samsung Electronics has recently signed an original equipment manufacturer (OEM) contract with Dixon Technologies, an Indian home appliance manufacturer. Dixon Technologies produces 55-inch or smaller TVs, which account for more than 85 percent of the Indian TV market as a whole.
Previously, Samsung Electronics stopped producing TVs at its Chennai plant in October 2018 after the Indian government suddenly increased tariffs on major TV components such as liquid crystal display (LCD), light emitting diode (LED) and organic light-emitting diode (OLED) panels in February 2018. It avoided tariff barriers by importing finished products from Vietnam, which has signed a free trade agreement with India.
Since then, the Indian government has responded to the complaints from the electronics industry, and in September 2019, eased import regulations by abolishing the 5 percent tariff imposed on open cell panels and lowering tariffs on other TV components.
Samsung Electronics then decided to outsource local production to Dixon to further strengthen the price competitiveness of its mid- to low-priced TV lineups in the 30-inch to 40-inch range. Premium TVs will be imported from Vietnam as they are now.
Samsung will manage overall quality and price, and Dixon will be responsible for most of the production process. Dixon plans to manufacture Samsung TVs at the Tirupati plant in the southern Indian state of Andhra Pradesh. Dixon also manufactures Samsung's washing machines and low-cost feature phones.