Sony India to exit audio manufacturing in India

The company plans to instead increase import of finished goods from its manufacturing bases in Thailand, which caters to the entire Asian market, for providing a wider and the latest selection of electronic good for consumers in India.

The decision was taken because the company felt that the sales volumes generated by Sony India did not justify the costs involved in running a manufacturing unit for audio products.

According to an official from Sony India, "The decision to stop audio production was reached as part of Sony India''s review of its production structure and in line with Sony''s overall review of its global production structure. We aim to achieve lean, efficient and high value-added operations for the whole Sony group. Sony India has thus decided to stop production of audio products by June-end.

Sony is also said to be increasingly scaling down the manufacture of colour TVs and meeting most of the Indian demand through imports though there is no confirmation of this. The official cited the increasing competition in the Indian market due to rapid advancement of technology and wider market accessibility, that made consumers turn to more advanced and cheaper products. He said because of this Sony had decided to offer consumers in India access to the latest electronic products which it would import into the country.

Industry insiders say that Sony India's decision is based on the free trade agreement (FTA) expected to be signed between Indian and Thailand. Sony would like to use its facility in Thailand for the purpose of importing products as it would be cheaper though Sony officials denied that the decision was based on FTA.

The company''s current market share of audios is 4.5 per cent in value terms and for CTV it is 7.8 per cent in value terms. LG and Samsung dominate the CTV market while Philips reigns over the audio market.