Sony has announced that it will begin manufacturing its Bravia line of televisions in India at Foxconn’s plant near Chennai and might even considering exporting devices from the country.
Kenichiro Hibi, MD of Sony India, said that the company is also evaluating the possibility of manufacturing phones in the country and might eventually setup its own manufacturing unit.
“The government’s ‘Make in India’ policy and the growing importance of India for Sony worldwide has accelerated our decision to manufacture in India once again,” he added, according to ET.
Local production will help Sony be more cost competitive and have a faster turnaround time when it comes to launching new models, possibly helping it reverse its ailing business.
India is Sony’s fourth largest global market after the US, China and Japan. The company’s Indian arm clocked Rs 10,600 crore in sales during FY 14-15, with smartphones and TVs contributing 40% each to its revenues.
Sony will initially manufacture two 43-inch TV models running on Google’s Android TV at Foxconn’s Sriperumbudur plant near Chennai. The line will soon be expanded to make 23-44 inch TVs locally.
The Modi government’s Make In India mission does indeed seem to be working when it comes to electronics manufacturers. Given the high growth of smartphones and other smart devices, companies are evaluating to manufacture products in the country.
Foxconn has been looking to partner with several global manufacturers to locally assemble products after the government increased the excise duty on completely built electronics. However, the company is also looking at the India as a manufacturing destination.
The Chinese manufacturing sector is witnessing a slowdown and while demand is still increasing, India is fast outpacing China’s growth. Apple reported that sales growth in India during the June 2015 quarter was 93% as compared to 75% in China.