Colour TV manufacturers and consumer finance companies are meeting on December 18 to evolve a more liberal financing regime to boost CTV sales starting with the coming cricket World Cup.
Going by the orders placed for picture tubes, cumulative CTV sales for January and February 2003 are expected to be at least 2 million units.
The agenda for the meeting in Mumbai includes forging partnerships between finance companies and CTV manufacturers, and evolving organised financing schemes for the rural and semi-urban markets.
The Consumer Electronics and TV Manufacturers' Association, according to sources, will urge finance companies to lower interest rates and make finance schemes more liberal so that the consumer base could be widened.
As a quid pro quo, Cetma would act as a conduit between the financiers and individual companies to help iron out contentious issues. The CTV manufacturers' share in the finance scheme will also be discussed at length.
Chandramani Singh, national head (CTV), at LG, said, "There are a lot of hassles at present. For instance, in a zero finance scheme, the consumer has to make a down payment of at least three EMIs. He may also be charged a high processing fee. Many consumers are turned back. We will urge the financiers to relax these conditions."
Additionally, with the National Bank for Agricultural and Rural Development (Nabard) turning down a proposal to extend rural financing for consumer electronics and durables, as much as 10-20 per cent of the sales in the semi-urban and rural markets is hit. Cetma is hoping to rope in private financiers to do the job.
Cetma president Rajeev Karwal said he was confident that one or more regular private players will join hands with the CTV manufacturers' body to promote rural financing.
"The idea is to create a conducive environment and a business of faith and trust. Cetma promises to co-operate with interested parties to develop this regime," he said.
Karwal added that, during the annual conference of Cetma in October this year, members had decided to work together and with trade partners like dealers, distributors and financing companies to try and expand the market.
"You can cut prices and eat into each other's share. You can also create a larger market and expand volumes. We should strive for the latter since it helps all," he said.
Sales of colour televisions in a single month was the highest in October this year, at around 9 lakh sets.
But manufacturers are hopeful that they will be able to beat this record in January and February, when the cricket extravaganza starts.
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