Sony India banks on GST cuts, festive demand for double-digit FY25 growth, eyes 3–5% share gain in premium TVs

Sunil Nayyar, Managing Director, Sony India expects the market to grow 5–10%.

Sony India is banking on the festive season and the GST rate cut on televisions to spark a demand surge, aiming for double-digit revenue growth in FY25—though short of last year’s 20 percent, given a flat performance in the first five months of the fiscal. From September onwards, the company expects a rebound led by pent-up demand for TVs and soundbars.

With the new price reductions, Sony is targeting a 3–5 percent share gain in premium and super-premium TV categories. It anticipates strong consumer buying, similar to the post-COVID phase, Sunil Nayyar, Managing Director, Sony India, told Moneycontrol.

“The year so far has been mixed. The first five months—April to August—were flat across categories. Audio did well, the TV was flat, and imaging was steady. But from September 22nd onwards, we expect strong momentum across categories,” Nayyar said. “The first half dragged overall growth, so the full-year number will be lower, but from October to March, growth percentages should be at similar levels as last year. If consumers accept and respond to the GST benefit, we’ll see sustained demand right up to March,” he said.

The company closed FY24 with revenues of Rs 7,664 crore, recording a 20.6 percent on-year growth despite macroeconomic uncertainty. It is however, confident of crossing the Rs 10,000 crore revenue mark in the next two to three years.

The government earlier this month announced reduction in the duty on TV screens above 32-inch screen size from 28 percent to 18 percent. Sony is passing on a 7.8 percent benefit to customers starting September 22, which will reduce TV prices. For televisions, Nayyar said, consumer savings will be substantial because of Sony’s premium products with higher price points.

"Currently, sales are very low because consumers are waiting for the GST price cuts. This indicates sensitivity and pent-up demand. I’d call it the lull before the storm. From August 16th onwards, demand has been suppressed, but starting September 22nd, we expect strong consumer buying, similar in spirit—though not scale—to what we saw post-Covid," he said.

Overall, Nayyar expects the market to grow 5–10 percent. “The government’s direction is clear: boost consumption. With lower taxes on many items, households will have more savings, which should flow back into the economy through higher spending.”

"The price cuts are particularly significant in the premium segment, where Sony operates. With higher ticket sizes, the absolute savings for consumers are substantial, making Sony’s premium products more attractive and affordable compared to rivals," he said.

Sony is sharpening its focus on the large-screen television segment, particularly 55-inch and above models, where it leads the premium category. “We don’t track the entire market in detail, especially below 55-inch, because that’s not our playbook. In the 55-inch and above segment, our value share is already close to number one. With the new price reductions, I expect a 3–5 percent share gain in premium and super-premium categories,” Nayyar said.

The company is also strengthening its audio and imaging portfolios, while pushing combo offers such as Bravia TVs with soundbars, and expects festive promotions and GST-led affordability to drive upgrades across screen sizes and categories.

Sony is betting on e-commerce, offline retail, and quick commerce to drive sales this festive season.

"We are already big online players through the leading e-commerce portals. Both online and offline channels are important and complementary. We try to avoid conflicts by offering similar deals across platforms, leaving the final choice to consumers. Over the past couple of years, we have also started working with quick commerce platforms in a small way. The numbers are still small, but the channel looks promising," he said.

Online sales are now in high double digits as a share of Sony's total business—nearly double what they were four or five years ago. Offline still contributes the bulk of sales. "We don’t push channel share one way or another; it’s purely consumer driven."