Indian Appliance Makers Hike Prices Amid Copper Cost Surge

Leading appliance manufacturers in India have announced price hikes for air conditioners, LED TVs, and other consumer electronics. The increase will range from 5-8% and take effect from October 1. This is the third round of price hikes this year, driven by rising commodity prices and currency volatility.

The cost of copper, a critical component in AC manufacturing, has risen significantly over the past year, from $8,000-9,000 per metric ton to $14,500. Companies such as Blue Star, Godrej Appliance, Haier, Daikin, and Super Plastronics have confirmed price increases, while Panasonic is still evaluating.

Despite concerns about festive demand, some believe the impact will be limited, as dealers have stocked inventory at older prices, potentially covering sales until post-Diwali. However, others fear that higher prices could affect consumer sentiment during the peak festival season.

Manufacturers are under pressure to pass on rising costs to consumers due to sustained inflation in key inputs such as copper, aluminium, steel, and crude oil derivatives, alongside higher freight costs. Haier India President NS Satish stated that if they avoid price hikes, they will lose money.