Mumbai: Industry executives say the falling rupee has placed TV makers under severe pressure, given that domestic value addition in an LED television is only about 30 per cent. Critical components such as open cells, semiconductor chips and motherboards are largely imported, making costs highly sensitive to currency movements.
The situation has been worsened by a global memory chip crisis, driven by surging demand for high-bandwidth memory (HBM) used in AI servers. As chipmakers prioritise high-margin AI products, supplies for legacy electronics such as televisions have tightened, pushing up prices of DRAM and flash memory worldwide.
Haier Appliances India President NS Satish told PTI that LED TV prices are likely to rise by around 3 per cent due to the memory chip shortage and the weak rupee. Several manufacturers have already informed dealers about the impending price hikes.
Super Plastronics Pvt Ltd (SPPL), which manufactures TVs for brands such as Thomson, Kodak and Blaupunkt, said memory chip prices have jumped by nearly 500 per cent over the past three months. Its CEO Avneet Singh Marwah warned that television prices could rise by 7–10 per cent from January, largely due to the chip crisis and currency depreciation. He added that if memory chip prices remain elevated over the next two quarters, further hikes cannot be ruled out.
Experts caution that the upcoming price increases could blunt the recent boost in smart TV sales following the government’s GST rationalisation. GST on TV screens of 32 inches and above was cut to 18 per cent from 28 per cent, reducing prices by about Rs 4,500.
Videotex, a leading original design manufacturer (ODM) that also owns the Daiwa brand, said it is facing sustained pressure from steep increases in memory chip prices and supply constraints. “Flash memory and DDR4 prices at the sourcing level have risen by up to 1,000 per cent, largely because supplies are being diverted to AI data centres,” said Arjun Bajaj, Director of Videotex. He noted that the pressure is expected to continue at least until the second quarter of the coming year, after which some stability may return depending on global supply conditions.
Bajaj added that the depreciation of the rupee has further inflated import costs and that these increases will gradually be reflected in retail prices as older inventory is exhausted. While Videotex is adjusting production schedules and optimising inventories, he said the prolonged nature of the cost cycle makes it difficult to fully absorb the impact. Videotex manufactures smart TVs for brands including Reliance Group’s BPL and Reconnect, Havells’ Lloyd, Vijay Sales’ Vise, Hyundai, Toshiba, Compaq and more than 25 other Indian and international brands.
According to Counterpoint Research, India’s smart TV shipments declined 4 per cent year-on-year in the second quarter of 2025, weighed down by saturation in the smaller-screen segment, limited demand catalysts and weaker consumer spending.
Despite the near-term challenges, India’s TV market, valued at an estimated USD 10–12 billion in 2024, is projected to grow strongly over the longer term, driven by rising disposable incomes, increasing demand for smart and large-screen televisions, and the growing popularity of OTT content.