Consumer durables could become cheaper by up to Rs 5,800 after the government's move to cut excise duty by two per cent, but end users cannot just yet reap the benefit as companies are yet to work out the details.
"We have not yet discussed this issue internally. We would be able to say how much we will pass on to consumers only after we discuss it," LG India Director Sales and Marketing V Ramachandran said.
LG, the leading player in the Indian consumer durables market, has TVs priced between Rs 6,200 and Rs 83,000, air conditioners priced between Rs 11,400 and Rs 22,000 and refrigerators Rs 9,600 and Rs 2.25 lakh.
If the company decides to pass on the full benefit of two per cent cut to consumers, its products could be cheaper by about Rs 120 to Rs 4,500.
An official at Samsung India also said it is difficult to say immediately by how much prices would be cut in different categories.
While products that are completely made in India are likely to see a drop in prices, for others such as LCD TV, the panels for which are imported, it needs to be seen how much the price cuts would be.
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Samsung TVs are priced between Rs 6,500 and Rs 2.9 lakh, refrigerators at a range of Rs 13,000 to Rs 1.41 lakh, and air-conditioners between Rs 16,000 and Rs 32,000.
Assuming the company would pass the entire two per cent excise duty cut benefit to consumers, its products could see a price drop of Rs 130-Rs 5,800.
Samsung India Deputy Managing Director Ravinder Zutshi said he expected the industry to pass on the benefits of the excise duty cut to consumers, a move that would boost consumer demand.
Panasonic India General Manager Marketing Sabiha Kidwai said that at this point of time it is difficult to estimate the benefits that would be passed on to the consumers.
According to industry experts, players like Sony, which import products, are unlikely to pass on the excise duty benefit as it does not have a manufacturing unit in India.