New Delhi, Sep 24 (SocialNews.XYZ) India’s consumer durables market is expected to hit Rs 3 lakh–3.25 lakh crore by 2030, driven by rising incomes and replacement demand, a report said on Thursday.
The joint report by Boston Consulting Group (BCG) and the Confederation of Indian Industry (CII) said that easier financing access and changing consumption patterns will also act as drivers of the consumer durables market projected to grow at 8–10 per cent annually through 2030.
This growth could create an incremental Rs 40,000 to Rs 50,000 crore opportunity for domestic value addition across materials and conversion.
At the current trajectory of localisation, a significant share of this opportunity could still be met through imports by 2030 and closing this gap will require deeper localisation of critical components.
The report noted that technology access, scale and cost competitiveness remain key barriers to localizing components such as RAC compressors, TV display panels, refrigerator insulation and washing-machine motors.
Current bill-of-materials (BOM) localization ranges from 25–70 per cent across major categories, with TVs and air conditioners at the lower end and refrigerators and washing machines at the higher end.
Critical components such as TV display panels, RAC compressors, refrigerator insulation and washing-machine motors continue to depend on global supply chains.
Large-appliance household penetration in India remains 20-90 percentage points below regional peers, creating substantial room for future demand, the report noted.
"The next phase must be about building deeper capabilities across components, technology, product design and manufacturing, and using India’s domestic scale as a springboard for global competitiveness," said Abheek Singhi, Managing Director & Senior Partner, BCG.
India should prioritise commercial viability of localisation, build scale and cost competitiveness, and enable companies to move from manufacturing for the domestic market to designing and building for the world.
Source: IANS
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