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Audio market growth slips in 2000

By , agencyfaqs! | In | October 11, 2000
According to Consumer Electronics and Television Manufacturers Association, the audio market which was growing at a healthy annual rate of 20 per cent for the last three years, is showing signs of tripping up

agencyfaqs! News Bureau
NEW DELHI, October 11

The audio segment of the consumer electronics industry is likely to post negative growth in sales in the current year. According to Consumer Electronics and Television Manufacturers Association (CETMA), the segment which was growing at a healthy annual rate of 20 per cent for the last three years, has started showing signs of tripping up. In fact, the market growth was negative in the first nine months of the year 2000.
During the period, the overall sales of the audio market was less than Rs 750 crore against Rs 775 crore in the same period of the previous year, a CETMA release said.
The worst hit was the radio sub-segment which constituted 12 per cent of the audio market but registered an over 10 per cent sales dip this year. According to CETMA, sales of radios were expected to decline to 6.2 million units in the year 2000 from 7 million units last year.
The main reason for this decline in radios, which is mainly sold in the rural areas, has been the taxation policy of the government. The government has levied a 16 per cent excise duty on radios with an additional increase of 5 per cent sales tax this year. The price rationalisation led to mushrooming of the grey market, which does not pay any taxes to the government.

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