Struggling to keep pace with rivals, Panasonic winds down on washing machines and refrigerators in India, shifting focus to growth-ready tech segments. Layoffs might occur, too.
Panasonic Holdings is scaling down its consumer electronics footprint in India, withdrawing from the refrigerator and washing machine markets, according to a report by The Economic Times.
The Japanese firm is also closing its production line for these appliances at its Jhajjar plant in Haryana. The facility had been serving as a contract manufacturer for multiple brands.
Panasonic’s decision reportedly follows its continued struggle to secure a foothold in these segments. Market data from NielsenIQ, cited by an industry insider, shows Panasonic holds just 1.8% of the washing machine market and 0.8% in refrigerators.
The company has faced tough competition from established Korean players LG and Samsung, and China’s Haier, further challenging its growth.
However, despite the exit, Panasonic India will maintain its focus on televisions and air conditioning units. A spokesperson said the company is shifting focus to growth areas including home automation, HVAC (heating, ventilation and air conditioning), business-to-business (B2B) solutions, and energy and electrical systems.
Furthermore, dealers will be supported in clearing existing inventory, and the company has committed to maintaining full customer support, including warranties and spare parts.
Although the exact number of job losses has not been finalised, industry reports say layoffs may reach high double digits. Panasonic is looking to redeploy affected staff where possible.
The company is also coordinating with all partner firms sourcing products from the Haryana plant to ensure a smooth transition.
