Appliance Price Hikes Ahead of Diwali

Appliance makers in India are set to raise prices of air conditioners, televisions, refrigerators, and washing machines by up to 10% from October 1. The price hikes will be the third this year, taking cumulative increases across several categories up to 16-18% since January.

LG Electronics India, the country's largest consumer electronics maker, has informed trade partners of a sharp rise in input costs, including copper up 34%, resin 17%, steel 24%, and aluminium 16%. The company has also cited higher logistics and energy costs, as well as adverse foreign-exchange movements.

LG will raise prices of air conditioners, televisions, and home appliances by 5-7% from October 1. Tata-owned Voltas has communicated a 5-7% increase in AC prices, while Daikin India is raising prices by 6-10%. Godrej has communicated a 4-6% increase, Havells around 5%, while Bosch Home Comfort has also informed the trade of upward revision of prices.

Daikin India managing director KJ Jawa said the unprecedented pressure on input costs and supply chains was leaving manufacturers with little room to absorb further increases. He noted that copper prices have shot through the roof, appreciating by 35% year-on-year, and demand is likely to become subdued now compared with the 25-30% growth the industry had reported in the April-June quarter.