Air-conditioners, LED TVs, washing machines and other consumer appliances are set to become more expensive from October 1 as several companies plan to raise prices by 5-8 per cent, says a PTI report. The price increases come just before the peak festive shopping season and are being linked to higher costs of copper, steel, aluminium, crude oil derivatives and freight, along with currency exchange volatility. As per the report, this will be the third round of price hikes in 2026 for the industry. While some manufacturers are concerned that higher prices could affect festive demand, others expect consumers to still get some products at older prices because dealers stocked inventory before the latest hikes.
Why are AC, TV and appliance prices going up
As stated in the PTI report, manufacturers are blaming higher input costs as the main reason for the latest price increases. Copper, steel, aluminium and crude oil derivatives have all become more expensive, while freight costs have also risen.The ongoing West Asia crisis has added to concerns around commodity prices, supply chains and currency movements. Blue Star Managing Director B Thiagarajan said AC and deep-freezer prices have already increased by 5-8 per cent.“All the commodity prices have been going up because of the war. Copper, steel and plastics have all become costlier,” he said as quoted in the PTI report.Thiagarajan said this is the third price increase by the company this year. Compared with last year’s festive season, costs have risen by around 15 per cent. However, he said GST benefits of about 10 per cent now available to consumers would bring the net impact to roughly 5 per cent.
AC prices to rise up to 8 per cent
Air-conditioners are expected to see some of the biggest price increases. According to PTI, companies including Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have announced or confirmed price increases across categories.Godrej Enterprises Group Business Head and Executive Vice President Kamal Nandi said another industry-wide price increase has become “inevitable” after commodity prices rose 8-10 per cent since the previous revision.“Price hikes of 5-7 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,” he told PTI.Nandi also said buyers may still find products at current prices during the festive season because dealers have already stocked older inventory.“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 added.Haier India plans to increase room air-conditioner prices by around 5 per cent from October 1. The company has also confirmed a 2-3 per cent increase for categories including LED TVs and washing machines.Haier India President NS Satish said companies have little choice as input costs continue to rise. “If we avoid taking price hikes, we will lose money. If we increase prices, sales may be slightly impacted, but there is no choice,” he said.Satish said Haier could raise prices further after Diwali and again in January if costs remain high.He said the company is planning a cumulative price increase of about 15 per cent between now and January, with 5 per cent from October 1, another 5 per cent around December and a further 5 per cent in January.According to Satish, copper prices have risen from around USD 8,000-9,000 per metric tonne last year to USD 14,500. An air-conditioner requires around 3-4 kg of copper, he said.Daikin, LG and Hitachi also raise AC pricesDaikin Air conditioning India has already increased prices by 8-10 per cent from September 16, according to its Chairman and Managing Director Kanwaljeet Jawa.“Copper prices have gone up by almost 25-35 per cent. The dollar is strengthening and commodity prices continue to rise. Companies are under tremendous pressure,” he said.According to sources cited by PTI, LG and Bosch Home Comfort, which owns Hitachi-branded air-conditioners, have also raised AC prices by around 5 per cent.
LED TV and washing machine prices may also rise
The price increases are not limited to air-conditioners. Some manufacturers are also raising prices of washing machines, refrigerators and LED TVs by around 3-4 per cent, while others are still assessing the impact.Super Plastronics, which manufactures and markets television brands including Thomson, Kodak and Blaupunkt in India, plans to increase TV prices by around 7 per cent after October. Its appliance prices have already risen by 4-5 per cent.SPPL Director Avneet Singh Marwah said higher prices could affect festive demand because consumers generally expect discounts and promotional offers during this period.“Global instability and rising costs will definitely have some impact on consumer sentiment,” he said.The price rise may continue after Diwali. Videotex Director Arjun Bajaj said higher freight costs and supply chain disruptions could create a new pricing benchmark after Diwali.“Television prices for smaller screen sizes could rise by up to 20 per cent, while larger screen sizes may see increases of up to 10 per cent, depending on screen size,” he said.Meanwhile, Panasonic said it is still assessing the situation before deciding whether to increase prices.Panasonic Life Solutions India Head of Product Marketing and Planning for the AC category Abhishek Verma said, “The industry continues to witness unprecedented cost pressures and we are evaluating the situation carefully.”