Production of TV Sets Up 30%

EghtesadOnline: A total of 400,000 television sets were produced in Iran during the first five months of the current Iranian year (March 20-Aug. 21), which indicate a 30% rise compared with the similar period of last year, according to the secretary of Audiovisual Appliances Producers Union.

News ID: ۷۵۰۸۶۴

02 September 2020

“This year, production conditions are much better than last year's. Some Iranian companies encountered production problems when well-known international brands left the country, after the reimposition of US sanctions. But at present, these companies have managed to get back on their feet and production is increasing,” Mohammad Reza Shahidi was also quoted as saying by IRNA.

The official noted that home appliance production is partly dependent on the import of raw materials and spare parts, adding that the business is in need of some $300 million this year, which has to be allocated by the Central Bank of Iran so that vital imports are undertaken.

A total of 825,400 television sets were produced in Iran last year (ended March 19, 2020), indicating a 6.3% increase compared with the year before.

According to Shahidi, current market demand for television sets in Iran is at least 1.7 million per year.

"Last year’s [March 2019-20] production was by far lower than the market demand," he added.

The official noted that the main problem of this industry is the sheer size of smuggling into the domestic market.

He says around 700,000 contraband television sets are imported into the Iranian market annually, which is unprecedented in the last 20 years in spite of the ban on imports of foreign TV sets.

Last year, an Indian manufacturing company of various brands of home appliances said it planned to make investments in Qazvin Province for establishing a production line.

Representatives of the Indian company held talks with provincial officials in Qazvin, Mehr News Agency reported, without identifying the Indian company.

As for the reason behind choosing Qazvin Province from among other Iranian provinces for investment, the Indian side said, “Compared to Tehran, Qazvin enjoys high potentials and capacities for investment activities. Our company will start its production in Qazvin in 2020 and all state-of-the-art technologies for manufacturing home appliances will be transferred to this province within five years.”

In view of US sanctions and the absence of two famous South Korean brands of home appliances in Iranian market, namely Samsung and LG, a suitable opportunity has been created in Iran for investment, the Indian side said.

The two South Korean brands had long dominated Iran's home appliance market prior to the latest round of US sanctions.

The Indian company initially started manufacturing home appliance parts and equipment in 2004 for the two South Korean companies but the company embarked on producing these parts for its own brand in 2012.

Once sanctions imposed on Iran are lifted, Iran will get the lion’s share of the whole Central Asian markets, according to the Indian side, announcing that in the first phase of this project, the company will manufacture refrigerators, LCD TVs and washing machines in Qazvin Province.