Generally, the Indian market witnesses a surge in business activity during the festive season, as people prefer to purchase various home appliances and electronic goods during Dussehra and Diwali. However, consumers will have to spend more on these items this festive season because major home appliance and consumer electronics companies are set to hike the prices of their products starting October 1st. Consequently, the prices of several home appliances and electronic goods—such as air conditioners (ACs), LED TVs, and washing machines—will increase.
Many major companies have stated that they have been compelled to raise product prices due to surging metal costs—driven by ongoing geopolitical unrest in West Asia—and currency exchange rate volatility, which have increased their production expenses. This marks the third time this year that prices in the sector are being hiked due to the Middle East crisis; price increases have already been implemented in two previous rounds. The decision stems from the steep rise in the costs of key raw materials—such as copper, steel, aluminum, and crude oil derivatives—as well as escalating freight charges. It is reported that along with a 5 to 8 percent hike in air conditioner prices, the costs of washing machines, refrigerators, and LED TVs will also rise by 3 to 4 percent. Meanwhile, other companies are monitoring the situation to assess the overall impact.
Due to ‘pre-buying schemes’ active in August and September, existing stock purchased at older rates is still available, which may keep retail prices stable until Diwali; however, the new prices will come fully into effect towards the end of the festive season. According to a PTI report, major companies such as Blue Star, Godrej Appliances, Haier, Daikin, and Super Plastronics have either confirmed or already implemented price hikes ranging from 4 to 10 percent. Additionally, LG and Bosch Home Comfort (Hitachi) have raised air conditioner prices by approximately 5 percent, while the prices of Blue Star ACs and deep freezers have reportedly increased by 5 to 8 percent.
