Panasonic Holdings has announced its decision to exit the washing machine and refrigerator segments in the country.
The Japanese electronics giant will cease production of these appliances at its Jhajjar factory in Haryana, a decision that is expected to result in layoffs in high double digits.
This restructuring is part of Panasonic’s broader global strategy to focus on high-growth, future-ready segments and exit loss-making categories.
Why the Exit? Market Share and Competitive Pressures
Panasonic’s decision stems from its struggles to gain meaningful market share in India’s highly competitive white goods sector.
According to industry data, the company holds only 1.8% of the washing machine market and a mere 0.8% in refrigerators.
These figures pale in comparison to dominant players like LG, Samsung, and Haier, which have long commanded consumer loyalty and pricing power in the Indian market.
Industry executives cited by The Economic Times noted that Panasonic struggled to scale its operations in these product segments.
Combined with intense pricing pressure, this made continued operations unsustainable.
Impact on Operations and Workforce
The Jhajjar plant had been manufacturing refrigerators and washing machines for domestic use.
It will now be repurposed for contract manufacturing on behalf of other brands.
Panasonic India has confirmed that job losses are inevitable, although the exact number has not been finalized.
The company is working to relocate some affected employees within its broader ecosystem.
A Panasonic spokesperson described the layoffs as a “difficult but necessary step”, adding that the company is “fully committed to supporting affected employees” through transition assistance and reskilling opportunities.
Focus Areas of Panasonic Going Forward: ACs, TVs, and B2B Solutions
Following the exit, Panasonic will sharpen its focus on televisions, residential and commercial air conditioners, and B2B solutions.
The company also plans to expand into home automation, energy solutions, and electricals, aligning with its global restructuring strategy aimed at improving profitability and agility.
This move is consistent with Panasonic’s global announcement in May 2025 to cut 10,000 jobs worldwide, including half in Japan and half overseas, as part of a broader effort to streamline operations and exit unprofitable businesses.
Panasonic Customer and Dealer Support During Transition
Panasonic has assured customers that it will continue to provide after-sales service, including warranty coverage and spare parts for existing refrigerator and washing machine owners.
The company is also working with dealers to liquidate existing inventory and ensure a smooth transition.
Additionally, Panasonic is informing all partner companies sourcing products from the Haryana plant to give them sufficient runway for operational adjustments.
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