ACs, TVs and washing machines are set to become costlier this festive season, with several manufacturers planning price hikes of 5–8% from October amid rising commodity, freight and supply-chain costs.
BY PC Bureau
October 1: Consumers planning to buy an air-conditioner, television, washing machine or other home appliance this festive season may have to pay more, with several manufacturers preparing to raise prices by 5–8% from October. The increases come as manufacturers grapple with higher costs of copper, steel, aluminium, plastics and crude-oil derivatives, along with rising freight costs and currency fluctuations, according to a PTI report.
The latest round would mark the third price increase in the consumer electronics sector this year, although shoppers may still be able to buy some products at existing prices for a few weeks as dealers clear stocks purchased before the latest hikes.
Why appliance prices are rising
Manufacturers say rising input and logistics costs are making another round of price increases difficult to avoid. Commodity prices, freight charges and supply-chain pressures have pushed up the cost of manufacturing and transporting appliances.
Blue Star Managing Director B. Thiagarajan said prices of air-conditioners and deep freezers had already risen by 5–8%.
“All the commodity prices have been going up because of the war. Copper, steel and plastics have all become costlier,” he told PTI.
Thiagarajan said the latest increase was Blue Star’s third this year. However, he said GST-related benefits of around 10% would limit the net impact on consumers to roughly 5%.
AC prices could rise by up to 8%
Air-conditioners are expected to see some of the sharpest increases. Companies including Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have announced or indicated price hikes.
Godrej Enterprises Group Business Head and Executive Vice President Kamal Nandi said another increase had become “inevitable” after commodity prices rose 8–10%.
“Price hikes of 5–7% 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,” he said.
Haier India plans to increase room AC prices by around 5% from October 1, while prices of its LED TVs and washing machines are expected to rise by 2–3%.
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Existing stocks could offer some relief
Consumers may not immediately feel the full impact of the hikes because retailers are still holding products bought at earlier prices.
Nandi said dealer inventories could continue to be sold at current prices through much of the festive season.
“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,” he said.
This means shoppers looking for an AC, television or washing machine may still find models at existing prices during the early part of the festive season. Actual availability and prices, however, will depend on the brand and dealer.
TVs, washing machines and refrigerators also affected
The price pressure extends beyond air-conditioners. Some manufacturers are planning increases of around 3–4% for washing machines, refrigerators and LED TVs.
Super Plastronics plans to raise television prices by about 7% after October, while prices of some of its other appliances have already increased by 4–5%.
Videotex Director Arjun Bajaj said television prices could remain under pressure even after Diwali. He said smaller-screen televisions could see increases of up to 20%, while larger-screen models could become up to 10% more expensive, depending on screen size.
Panasonic, meanwhile, is still assessing the cost situation before deciding whether to raise prices.
For consumers, the availability of older dealer inventory could therefore provide a limited window to make purchases at current prices before the latest round of increases is fully passed on.
