ACs, TVs set for 5%-8% price hike

Ahead of the peak festival season, leading appliances and consumer electronics makers are going to increase prices of air conditioners, LED TVs, washing machines and other products by 5 per cent to 8 per cent, effective from October 1, passing on to customers the rise in inputs of soaring metals such as copper, steel, crude derivatives as well as currency exchange volatility due to the ongoing West Asia crisis.

This will be the industry’s third round of price hikes in 2026, with manufacturers saying sustained inflation in key inputs such as copper, aluminium, steel, and crude oil derivatives, coupled with higher freight costs, has made further price revisions unavoidable.

Air-conditioner prices are set to rise 5-8 per cent; some players are also increasing prices of washing machines, refrigerators and LED TVs by 3-4 per cent, industry executives said, while others are still evaluating the impact.

While some companies fear the hike could affect festive demand, others believe the impact will be limited, as dealers and distributors have already stocked inventory bought at older prices through pre-buying schemes in August and September.

Companies like Blue Star, Godrej Appliance, Haier, Daikin, and Super Plastronics have already announced or confirmed price hikes ranging from 4-10 per cent across categories, while Panasonic said it was still evaluating the situation before deciding on any increase.

According to sources, LG and Bosch Home Comfort, which owns Hitachi-branded air-conditioners, have also increased AC prices by around 5 per cent.

Blue Star Managing Director B Thiagarajan said prices of ACs and deep freezers have already increased by 5-8 per cent 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 third price increase undertaken by the company this year.

Comparing prices with last year’s festive season, Thiagarajan said costs have risen around 15 per cent, but with GST benefits of about 10 per cent now available to consumers, the net impact for buyers would work out to roughly 5 per cent more.

Kamal Nandi, Business Head and Executive Vice President, Appliances Business, Godrej Enterprises Group, said another industry-wide round of price increases has become ‘inevitable’ after commodity prices rose 8-10 per cent since the last 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.

However, he also said consumers would still have an opportunity to buy products at existing prices during the festive season as inventory procured before the hikes remains available in the distribution channel.

“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 President NS Satish said: “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 the company plans to raise prices by around 5 per cent on RAC from October 1 and may undertake further increases after Diwali and again in January if input costs continue to rise. He also confirmed a 2-3 per cent price hike in other categories such as LED TVs, washing machines and others.

He noted that copper prices have risen significantly over the past year, sharply increasing manufacturing costs, particularly in the air-conditioner segment where copper is a critical component.

Satish said Haier plans a cumulative hike of about 15 per cent between now and January — 5 per cent from October 1, another 5 per cent around December, and a further 5 per cent in January.

Daikin Airconditioning India Chairman and Managing Director Kanwaljeet Jawa said the company has already increased prices by 8-10 per cent from September 16.

On consumer demand, he said it remained good for now. “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,” he said.