India's Consumer Electronics Set for Another Price Hike Before Diwali

India's consumer electronics sector is bracing for another price hike, just in time for Diwali. The cost of air conditioners (ACs), televisions, washing machines, refrigerators, and other appliances is set to rise by 5-8% from October 1, while TVs, refrigerators, and washing machines may see a 3-4% increase.

The move marks the third broad price revision for consumer durables this year. Copper prices have skyrocketed to $14,500 per tonne from $8,000-$9,000 last year, making it a major pressure point for AC manufacturers. The broader metals market has also tightened, with copper reaching record highs due to supply constraints and sustained demand.

The weaker rupee, down 6.6% against the US dollar this year, is another factor driving up costs. A NITI Aayog report revealed that India imports around 90-95% of its semiconductor and electronic component requirements as of 2023. Shipment costs have also increased due to disrupted component shipments from China and Taiwan.

Smartphones are facing a global supply shock due to the rapid expansion of AI infrastructure, diverting capacity away from consumer devices. Counterpoint Research estimates that smartphone retail prices in India have risen by 21% on average this year, with more than 40% of models seeing price increases.