Consumer appliance and electronics manufacturers begin renegotiating deals with component suppliers

Industry players say it remains to be seen the steps that Chinese government may take to protect its component production industry

Consumer appliance and electronics manufacturers are returning to the drawing board to renegotiate deals with Chinese component makers. This comes amidst the US-China tariff war which has led to an oversupply situation in China for components with slowdown in fresh orders.

Atul Lall, Vice-Chairman and MD, Dixon Technologies said while there remains high level of uncertainty but some bit of softness in terms of components prices is visible.

China plays a key role in terms of components supplies globally for electronics and appliance sector. Indian electronics and appliance manufacturers import a large chunk of components from China. With the imposition of high tariffs by US this month, the Chinese market is seeing slowdown in terms of fresh orders and other disruptions.

Reduced prices

Avneet Singh Marwah, CEO, SPPL, which is the Indian brand licencee for Kodak and Blaupunkt in India, said: “Appliance and electronics manufacturers like us have begun renegotiation of agreements with the Chinese component suppliers. If these go as per plan, we may see reduction in prices of components by 2-3 per cent. But we will need to see how things pan out.”

Industry players also added that it remains to be seen the steps that Chinese government may take to protect its component production industry.

Kamal Nandi, Business Head & EVP, Aappliances Business, Godrej Enterprises Group said: “Prices of components are likely to come down due to the adverse impact of the high tariff imposed by US on China which has led to an oversupply situation in the Chinese markets. There has already been some drop in prices of key commodities such as copper. Appliance and electronics manufacturers may see some benefits in terms of component prices in the September quarter.”

However,currency fluctuations voltality remains a key monitorable for the industry which has led to increase in their costs.

Published on April 10, 2025