Price Hike: Consumers planning to purchase home appliances during the Dussehra and Diwali festive season may have to spend more this year. Air conditioners, smart LED TVs, refrigerators and washing machines are expected to become costlier as manufacturers face higher raw material and logistics expenses.
Several major brands, including Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics, have already announced or implemented price increases on selected products. Industry executives have attributed the changes mainly to rising commodity prices, higher transportation costs and currency-related pressures.
Rising Raw Material Costs Push Up Appliance Prices
Manufacturers are facing increased costs for essential materials such as copper, aluminium, steel, plastic and oil-based components. Copper has seen a particularly sharp rise in international markets, moving from around $8,000–9,000 per tonne last year to approximately $14,500 per tonne.
The increase has a direct impact on air-conditioner production because a typical AC requires around 3 to 4 kilograms of copper. Higher shipping costs and fluctuations in the rupee-dollar exchange rate have added further pressure on manufacturers.
AC Prices Rise as Companies Adjust Rates
Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have increased prices across selected product categories. LG and Bosch Home Comfort, which distributes Hitachi air conditioners, have also raised AC prices by around 5%. Panasonic is currently considering whether to make a similar adjustment.
Blue Star Managing Director B. Thiagarajan said rising commodity costs have resulted in AC and deep-freezer price increases of around 5% to 8%. According to him, prices of materials such as copper, steel and plastic have increased significantly, with the company already making three price revisions during the year.
Daikin has also increased its prices. Chairman and Managing Director Kanwaljeet Jawa said the company had raised prices by 8% to 10% since September 16. He cited a 25% to 35% increase in copper costs along with the stronger dollar as factors adding to the company’s expenses.
Godrej and Haier Announce Further Increases
Godrej Enterprises Group Business Head and Executive Vice President Kamal Nandi said commodity costs have risen by 8% to 10% since the company’s previous price revision. As a result, the company expects a 5% to 7% increase across different product categories.
However, products purchased by retailers at the earlier prices are expected to remain available in stores for around one to one-and-a-half months.
Haier India President N.S. Satish said the company plans to increase air-conditioner prices by approximately 5% from October 1. Prices of products such as LED TVs and washing machines are also expected to rise by 2% to 3%.
Satish said further price adjustments could take place in December and January if raw material costs continue to increase.
Meanwhile, Super Plastronics Private Limited (SPPL) plans to increase TV prices by around 7% after October. The company has also indicated that prices of other household appliances have already increased by approximately 4% to 5%.
Could Festive Shopping Become More Expensive?
The timing of these increases is significant because consumer electronics and home appliances generally see strong demand between Navratri and Diwali. Companies traditionally offer discounts and promotional deals during this period to attract buyers.
With manufacturers facing continued pressure from commodity, logistics and other input costs, consumers planning to purchase appliances during the festive season may encounter higher prices across several categories.
Disclaimer
This article is intended for general informational purposes and is based on the information provided in the source material. Prices and product costs can vary by brand, model, retailer and location. Companies may also revise prices depending on market conditions and input costs. Consumers should check the latest price with the manufacturer or authorized retailer before making a purchase.