Appliance makers plan price hikes

Consumer electronics and appliance makers are raising prices of air conditioners, LED TVs, washing machines and other products by five to eight percent from October one.

Why prices are rising

Higher costs of copper, steel, aluminium and crude derivatives, along with currency volatility and rising freight expenses, are squeezing manufacturer margins.

Third price hike this year

The increase marks the industry's third round of price hikes in twenty twenty-six, coming just ahead of the peak festive shopping season.

Which companies are raising prices

Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have already announced or confirmed price increases of four to ten percent across categories.

LG and Panasonic's approach

LG Electronics India announced an upward revision of AC prices by five to seven percent starting October one. Panasonic is evaluating market conditions before deciding on a hike.

Blue Star on commodity costs

Blue Star managing director B Thiagarajan said prices of ACs and deep freezers have already gone up five to eight percent because of higher commodity costs.

“All the commodity prices have been going up because of the war. Copper, steel and plastics have all become costlier.”

Costs up fifteen percent year-on-year

Compared with last year's festive season, costs have increased by around fifteen percent, Thiagarajan said. However, with GST benefits of about ten percent now available to consumers, the net increase for buyers would be around five percent.

Godrej on inevitable price hikes

Kamal Nandi, business head and executive vice president of Godrej Enterprises Group, said another industry-wide price increase had become inevitable after commodity prices rose eight to ten percent since the previous revision.

“Price hikes of five to seven per cent across categories will happen. The timing may differ from brand to brand, with some implementing it from October and others from November, but it has to happen.”

Old inventory may delay impact

Godrej's Nandi said consumers could continue to find products at existing prices during the festive season because dealers and distributors had stocked inventory before the price increases.

“There are pipelines which will last for about a month to one-and-a-half months. Diwali should largely get covered with old-price inventory. Post-Diwali, the new prices will certainly take effect.”

Haier plans multiple increases

Haier India president NS Satish said the company plans to raise prices of room air-conditioners by around five percent from October one, with further increases possible after Diwali and in January.

“If we avoid taking price hikes, we will lose money. If we increase prices, sales may be slightly impacted, but there is no choice.”

Copper prices surge dramatically

Copper, which was priced at eight thousand to nine thousand dollars per metric tonne last year, has now touched fourteen thousand five hundred dollars. An air-conditioner requires around three to four kilograms of copper.

Haier expects cumulative fifteen percent increase

Haier expects to implement a cumulative fifteen percent increase between now and January: five percent from October one, another five percent around December and a further five percent in January.

Daikin already raised prices

Daikin Airconditioning India chairman and managing director Kanwaljeet Jawa said the company had already raised prices by eight to ten percent from September sixteen.

“Copper prices have gone up by almost twenty-five to thirty-five per cent. The dollar is strengthening and commodity prices continue to rise. Companies are under tremendous pressure.”

TV makers and others raising prices

Super Plastronics, which manufactures Thomson, Kodak and Blaupunkt televisions in India, plans to raise TV prices by around seven percent after October. Videotex said television prices for smaller screen sizes could rise by up to twenty percent.

Festive season accounts for major sales

The festive period from Onam through Dussehra and Diwali typically accounts for thirty to forty percent of annual sales for appliance manufacturers, making this timing particularly sensitive.

Consumer spending sentiment mixed

An InMobi Advertising survey found that seventy-seven percent of Indian consumers planned to increase their festive shopping budgets, down from eighty-three percent last year. The survey covered one thousand one hundred ten men and women between August seven and eleven, twenty twenty-six.

Strong demand so far despite earlier hikes

Consumer demand in India reached a five-year high during the initial festive period covering Onam, Rakshabandhan and Ganesh Chaturthi. Volume sales of refrigerators, air-conditioners and washing machines rose twelve to fifteen percent year-on-year, while value sales increased eighteen to twenty-three percent.