Hisense Moves Into Automotive Business As TV Sales Wobble
Hisense has finally moved to sell Toshiba branded TVs in the US market after consumers rejected their own brand. The Chinese Company has also moved to buy a controlling stake in an auto parts maker in an effort to grow market share in the auto air conditioning market as well as expand into the B2B market.
Chinese sales of Hisense TV’s and appliances declined during the COVID-19 pandemic, while in the USA, Hisense was forced to shop for another TV brand after Sharp who granted Hisense a licence to manufacture Sharp TVs quickly withdrew the licence after branding the TV’s being manufactured by Sharp as “Shoddy” and not up to the quality that Sharp expects of a TV manufacturer.
Last week Hisense Group, reached a deal to purchase a controlling stake in Sanden Holdings, an embattled Japanese auto parts company.
Hisense Home Appliances Group announced it will buy a 75% stake in the manufacturer of automotive air conditioning systems for US $190 million.
The deal is part of Hisense’s strategy to shift its focus from consumer-oriented businesses to B2B operations to secure stable revenue flows claims Asian media.
Hisense is also going to have a crack at rolling out high-end TVs in the USA under the Toshiba brand. This will see them go head-to-head with archrivals TCL, Samsung and Sharp.
Toshiba stopped making and selling TVs two years ago. Instead, they take a licence fee from Chinese brand Hisense who have the rights to put the Toshiba name on a Chinese TV.
Hisense owns TVS REGZA a subsidiary based in Japan that makes and sells visual equipment under Toshiba’s REGZA brand.
In other moves Midea Group who was trying to set up a retail chain of 20 stores in Australia has purchased a 29% stake in Chinese medical equipment maker Beijing Wandong Medical Technology from existing shareholders. It was another move by Midea to diversify its business portfolio, following its acquisition of German industrial robot maker Kuka in 2017.