Festive Season Brings Higher Prices for Air Conditioners, TVs in India

The festive season is approaching, and consumers in India may face higher prices for air conditioners (ACs), TVs, and other appliances due to rising costs of components, commodities, and freight. The Iran-US conflict has added pressure to global commodity prices, shipping routes, and supply chains, affecting consumer durable manufacturers in India.

Several companies have already raised prices this year, but the latest increases are attributed to the ongoing war between Iran and the US. Manufacturers like Blue Star, Thomson India, Haier, and Daikin have increased their prices by 5-10% or plan to do so soon. The main cost pressures include copper, metals, compressors, freight, memory chips, open-cell panels, plastics, and other electronic components.

TV manufacturers are dealing with rising costs for memory chips, open-cell panels, plastics, and other electronic components. Thomson India CEO Avneet Singh Marwah said the consumer durables industry is facing pressure from both higher input costs and supply-chain disruptions.

Some manufacturers, like Intex Technologies, are choosing to absorb part of the additional costs rather than immediately passing on the entire increase to consumers. The company's director, Keshav Bansal, stated that consumers were still willing to spend but were paying closer attention to the value offered with a product.