Indian Consumer Durable Makers Face Fresh Price Hikes Amid Rising Input Costs

Consumer durable manufacturers in India are bracing for another round of price hikes during the festive season, due to rising input costs. The prices of air-conditioners, televisions, refrigerators, and other consumer durables have already increased by 10-12% since January this year.

LG Electronics India will raise its air-conditioner prices by 5-7% from October 1st, while Intex Technologies has increased prices in select large appliance categories by 2-3%. Companies are absorbing part of the cost pressure internally through sourcing efficiencies, localisation, value engineering, and lower margins.

However, companies are finding ways to keep entry-level products affordable. They are substituting aluminium for copper and removing unnecessary features from these products. This is crucial because while premium consumers drive margins, entry-level consumers lead volume growth in the segment.