Leading consumer durable manufacturers in India are set to increase prices from October 1, citing rising raw material costs and currency fluctuations. The move will impact air-conditioners, TVs, refrigerators, and washing machines just before the peak festival shopping period.
Consumer durable manufacturers are preparing a fresh round of price increases from 1 October, with air-conditioner makers set to lead the move and wider hikes likely across televisions, washing machines and refrigerators. The timing puts the adjustments just ahead of the peak festival buying season, a period when appliance sales usually strengthen and retailers typically build inventory in advance. According to The Hindu BusinessLine, several companies are pointing to persistent pressure from copper, steel and aluminium prices, crude-linked inputs and currency volatility.
Haier Appliances India said it will raise prices of its air-conditioner range by 5 per cent and increase other categories by 3-4 per cent, including LED televisions, washing machines and refrigerators. The company said higher commodity costs and exchange-rate movements had made it difficult to defer the decision, despite the proximity of the festival period. Trade sources quoted by The Hindu BusinessLine said LG Electronics India has informed partners that its air-conditioner portfolio will rise by 5-7 per cent from 1 October, while Voltas has also flagged a similar increase in room air-conditioners. Blue Star’s managing director, B Thiagarajan, confirmed a rise of 5-8 per cent from the same date.
The latest round follows multiple price revisions earlier this year, when manufacturers had already passed on higher raw material and logistics costs. Business Standard reported in March that leading air-conditioner makers, including Daikin, Voltas, Blue Star, LG, Haier and Mitsubishi Heavy Industries, had announced increases of 5-15 per cent, citing costly copper, a weaker rupee, revised energy-efficiency norms and freight expenses. Separate reports in the industry have also tied appliance inflation to elevated steel and aluminium prices, as well as redesign costs associated with tighter efficiency requirements.
The pressure is not limited to cooling appliances. LED television makers are also preparing changes, with SPPL planning a 10 per cent increase in October and Videotex saying smaller screen sizes could become as much as 20 per cent dearer, while larger sets may rise by up to 10 per cent. According to The Hindu BusinessLine, those companies are citing costlier memory chips and higher freight charges. Godrej Enterprises Group said price action across categories is becoming unavoidable because inflation since the last round of increases has been running at 8-10 per cent, although it expects trade stocks already in the channel to soften the immediate impact for shoppers during the festival window.
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