Chinese brands fear shortage, price hike

New Delhi: In deep distress after losing over Rs 40,000 crore in the lockdown while recovering less than 40 per cent to date, smartphone brands in India on Thursday said that if their containers carrying essential parts, components and accessories from China are not cleared by customs soon, there will be massive shortage and end users will only suffer.

The reactions came after the Indian Cellular and Electronics Association (ICEA), in a letter to Finance Minister Nirmala Sitharaman, said that all China-origin imports of the electronics industry have come under adverse action by customs at the ports without prior warning, which has impacted the supply chain. One of the leading Chinese smartphone makers on the condition of anonymity that a long-term delay would force them to pass on the burden to the consumers as they would be left with little supplies soon as the demand has risen.

"We have just started to limp back to normal after facing losses for nearly three months and now, our consignments are stuck at various ports. Keeping the rise in demand in concern, we will not be able to sustain if the goods are not cleared maximum within a week's time," lamented a Chinese smartphone company spokesperson, adding that the price hike will be an imminent step. Another spokesperson from a rival brand who is in a little better position as the next device launch is some days away, said there is a good demand coming from all locations in the country

"As there is a rebound after months-long lockdown, if shipments are stuck for a longer time, it will affect all brands irrespective of whether Chinese or Indian as a larger supply chain would be hampered," the spokesperson said. In the letter to the Finance Minister, Pankaj Mohindroo, Chairman of ICEA said that they understand that even goods already cleared and loaded in trucks for transport to the users' warehouse are being recalled and examined. India imports nearly $56 billion worth of electronic items from China

annually.