India's Consumer Electronics Makers Raise Prices by Up to 8% Amid Festive Season

The Indian festive shopping season is facing a test as consumer electronics and appliance manufacturers plan to raise prices by up to 8% in October. The price hikes are due to higher input costs, including copper, steel, aluminium, plastics, and crude derivatives, which have increased by 25-35%.

Companies such as Blue Star, Godrej Appliances, Haier, Daikin, and Super Plastronics have announced or confirmed increases across categories. LG and Bosch Home Comfort have also raised air-conditioner prices by around 5%, while Panasonic is still evaluating market conditions.

The timing of the price hikes may be softened by old-price inventory held by dealers, but the industry's guidance suggests that the full effect will emerge after Diwali if commodity and freight costs remain elevated. A household buying a new unit is exposed not only to the manufacturer's margin decision but also to the cost of the metal-intensive supply chain behind the product.

Haier plans to increase room air-conditioner prices by around 5% from October 1, with further increases after Diwali and again in January if input costs remain high. The company may implement a cumulative increase of 15% between now and January, spread across three rounds. Other companies are taking different approaches, with Godrej Enterprises Group business head Kamal Nandi saying price increases of 5-7% across categories have become unavoidable after commodity prices rose 8-10% since the previous revision.