Air-conditioner prices are expected to rise 5–8% from October 1, while televisions, washing machines and refrigerators could also become costlier as manufacturers face higher raw-material, freight and currency-related costs.
Leading consumer durable manufacturers are preparing another round of price increases ahead of the peak festive buying season, according to the supplied report.
Companies cited sustained increases in the prices of key raw materials such as copper, steel and aluminium, along with higher crude-derivative costs and adverse currency movements.
Haier Appliances India CEO NS Satish said the company is increasing AC prices by 5%, while prices of LED TVs, washing machines and refrigerators will rise by 3–4%. He said cost pressures from commodities, crude derivatives and exchange-rate volatility had intensified.
According to sources cited in the report, LG Electronics India has informed trade partners that prices across its AC portfolio will increase by 5–7% from October 1. The company had not announced a decision on other product categories at the time of the report.
Voltas has also informed trade partners of a 5–7% increase in room AC prices. Blue Star MD B Thiagarajan said the company would increase prices by 5–8% from October 1.
The report said the consumer durables sector has already implemented more than one round of price increases since January amid rising input costs.
Godrej Enterprises Group executive Kamal Nandi said commodity costs had increased by 8–10% since the previous price hike and indicated that an industry-wide increase of 5–7% across categories was inevitable.
Television prices may also increase. SPPL CEO Avneet Singh Marwah said the company plans a 10% price increase in October, while Videotex Director Arjun Bajaj said smaller-screen LED TVs could become up to 20% more expensive and larger screens could see increases of up to 10%.
Retailers’ existing inventories could, however, allow some consumers to purchase appliances at older prices for a limited period during the festive season.
