Indian Appliance Makers Switch Gears Amid Copper Price Surge

India's electronics and appliance manufacturers are revamping their production to mitigate rising costs. Copper prices have surged by 45% year-on-year, forcing producers to redesign motors, pipes, and coils in air conditioners, refrigerators, and washing machines.

By replacing copper with aluminum or alternative alloys, companies can save between 2-6% of final manufacturing costs. This value engineering strategy is being implemented across the industry, with brands like LG Electronics India and Voltas adjusting product designs to trim material volume per unit.

The shortage of components has led to a shift towards domestic sourcing. Indian consumer electronics manufacturers import around 30-40% of their inputs, leaving them vulnerable to higher freight rates and currency depreciation.

Brands are also countering cost pressures by absorbing price hikes on retail products. For example, prices on air conditioners have been raised by 10-12% across three rounds since January.