India’s television industry is gearing up for a possible slowdown in sales as rising production costs—intensified by the ongoing West Asia geopolitical tensions—put pressure on both manufacturers and consumers. The sector is already contending with elevated prices of memory components such as RAM, and is now facing additional cost burdens from plastics and higher ocean freight rates.
Manufacturers are also highlighting early signs of ‘downtrading’, where consumers shift toward smaller screen sizes due to rising prices. At the same time, depreciation of the rupee has further increased overall production costs, pushing up retail prices of televisions.
While some leading brands have absorbed part of the cost escalation to protect their market share in India’s highly competitive TV segment, not all companies have passed on the full increase to consumers. Even so, higher prices are beginning to influence buying behaviour, with many consumers delaying purchases. However, the industry remains hopeful of a demand revival during the festive season in the second half of the year.
Super Plastronics Pvt Ltd (SPPL) Director and CEO Avneet Singh Marwah said growth remains ‘very difficult’ amid rising input costs, adding that the industry is already witnessing clear signs of down-trading.
He explained that consumers are increasingly opting for smaller screen sizes. For instance, buyers who earlier considered a 55-inch television are now choosing 50-inch models, while those planning to purchase 65-inch TVs are settling for 55-inch options. Marwah’s company holds brand licenses for television labels such as Thomson, Kodak, and Blaupunkt.
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Television prices have risen sharply over the past six months. Entry-level 32-inch models, which were earlier available for around ₹9,000, are now priced closer to ₹11,000, reflecting the cumulative impact of higher input and logistics costs.
Haier India President NS Satish noted that while early signs of down-trading are visible, financing options are helping sustain demand for larger screen sizes. He said nearly half of the company’s sales are driven by EMI-based purchases, which help cushion the effect of price increases.
According to Satish, even a ₹5,000 hike translates into only a few additional monthly instalments, making premium products relatively accessible. He added that while some consumers continue upgrading to larger TVs through higher EMIs, price-sensitive buyers are shifting toward smaller models.
Satish also pointed out that companies have not yet fully passed on rising input costs to customers, though current television prices are now approaching pre-GST reform levels.
Market research firm Counterpoint Research has projected a near-term dip in demand. Principal Analyst Anshika Jain said TV shipments in India are expected to decline by 5–6 per cent in the first quarter and 3–5 per cent in the second quarter of 2026, as higher RAM costs, freight disruptions, and rupee depreciation push prices upward. She noted that vertically integrated companies like Samsung are better positioned to absorb these cost pressures.
On the demand side, consumers are increasingly postponing purchases and prioritising essential spending over discretionary items like televisions. Nevertheless, a modest recovery is anticipated during the festive season later in the year, with the premium segment—particularly TVs sized 45 inches and above—expected to remain relatively resilient due to financing options such as EMIs.
Jain, however, does not foresee a widespread long-term shift toward smaller screen sizes. She emphasised that the broader trend of ‘premiumisation’ remains intact, with larger displays—especially 55 inches and above—continuing to gain share over time.
She added that although the upgrade cycle may lengthen in the current environment, consumers are still inclined to opt for bigger screens when they do upgrade, reinforcing the long-term growth outlook for premium televisions in India.
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