Indian Electronics Makers Set for Another Price Hike Ahead of Diwali

Indian consumers are bracing for another price shock ahead of Diwali as top electronics manufacturers including LG, Daikin, Samsung, and Godrej plan to raise prices by up to 10% from October 1.

This will be the third price hike this year, taking cumulative increases across several categories to 16-18% since January. The latest round of price increases is attributed to a sharp rise in input costs, with copper, resin, steel, and aluminium prices increasing by 34%, 17%, 24%, and 16% respectively.

LG Electronics India's co-chief sales and marketing officer Sanjay Chitkara wrote in a letter that despite absorbing the pressure, the company had to revise prices due to increased costs. LG plans to raise prices of air-conditioners, televisions, and home appliances by 5-7%. Daikin India is raising prices by 6-10%, while Godrej has communicated a 4-6% increase.

Daikin India's managing director KJ Jawa said the unprecedented pressure on input costs and supply chains had left manufacturers with little room to absorb further increases. He added that demand was likely to become subdued, compared to the 25-30% growth reported in the April-June quarter.