The festive cheer may come with a slightly heavier price tag this year.As shopping lists grow ahead of the peak season, air-conditioners, LED TVs, washing machines and other consumer appliances are set for another round of price hikes.Leading manufacturers are raising prices by 5-8% from October 1, citing higher costs of copper, steel, aluminium and crude derivatives, along with rising freight expenses and currency exchange volatility amid the ongoing West Asia crisis.This will be the industry’s third price hike in 2026. AC prices are expected to rise 5-8%, while some companies are increasing prices of washing machines, refrigerators and LED TVs by 3-4%. Others are still evaluating the impact.Companies including Blue Star, Godrej Appliance, Haier, Daikin and Super Plastronics have announced or confirmed increases of 4-10% across categories. LG and Bosch Home Comfort, which owns Hitachi-branded ACs, have also raised AC prices by around 5%, according to sources.
Higher commodities push up prices
Blue Star managing director B Thiagarajan said AC and deep-freezer prices had already increased 5-8% due to higher commodity costs.“All the commodity prices have been going up because of the war. Copper, steel and plastics have all become costlier,” he said, adding that this is the company’s third price increase this year.Compared with last year’s festive season, costs have risen around 15%, Thiagarajan said. However, GST benefits of about 10% available to consumers mean the net impact would be roughly 5% more.Godrej Enterprises Group Business Head and Executive Vice President, Appliances Business, Kamal Nandi said another industry-wide increase had become ‘inevitable’ after commodity prices rose 8-10% 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 said.
Old-price stock could cushion Diwali impact
The immediate impact on festive demand could be limited because dealers and distributors stocked inventory at older prices through pre-buying schemes in August and September.Nandi said this inventory could remain available through much of Diwali.“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.The festive period from Onam through Dussehra and Diwali typically contributes 30-40% of appliance manufacturers’ annual sales, according to sector reports.While some companies expect the impact on demand to be limited, others are concerned that higher prices could affect festive purchases.
Haier plans cumulative 15% increase
Haier India President NS Satish said manufacturers had little room to absorb the higher costs.“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.Haier plans to raise RAC prices by around 5% from October 1 and may increase them again after Diwali and in January if input costs continue to rise. It has also confirmed a 2-3% hike for LED TVs, washing machines and other categories.Satish said Haier plans a cumulative increase of about 15% between now and January — 5% from October 1, another 5% around December and a further 5% in January.Copper has been a particular source of pressure. Prices have risen from USD 8,000-9,000 per metric ton last year to USD 14,500 and are expected to keep rising, he said. An AC requires 3-4 kg of copper.
Daikin, SPPL raise prices
Daikin Airconditioning India Chairman and Managing Director Kanwaljeet Jawa said the company had already raised prices by 8-10% from September 16.“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.Demand remains good for now, Jawa said, but added, “I don’t know what will happen going forward, but everybody is aware of the reality in the marketplace right now. It might affect things in the long term if the situation doesn’t improve.”SPPL, which manufactures and markets Thomson, Kodak and Blaupunkt TVs in India, plans to increase TV prices by around 7% after October. Appliance prices have already risen 4-5%.SPPL Director Avneet Singh Marwah said higher prices could affect festive demand as consumers generally expect discounts and promotional offers.“Global instability and rising costs will definitely have some impact on consumer sentiment,” he said.
TV prices may rise further
Panasonic Life Solutions India head of product marketing and planning (AC category) Abhishek Verma said that the company was monitoring market conditions before deciding on any increase. “The industry continues to witness unprecedented cost pressures and we are evaluating the situation carefully,” he said.Videotex director Arjun Bajaj said rising freight costs and supply chain disruptions were expected to 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. With manufacturers facing sustained commodity and freight cost pressures, price increases are now being implemented across categories at different points between October and the post-Diwali period.
