Iran-US Tensions Drive Up Air-Conditioner, TV Prices in India

As tensions between Iran and the US continue to escalate, global commodity prices are on the rise, putting pressure on consumer durable manufacturers in India.

The conflict is affecting air-conditioner (AC) and television prices as companies struggle with higher costs for key components, commodities, and freight.

Blue Star has already increased its AC prices by 8%, while Thomson India plans to raise prices by around 10% across categories after October. Haier and Daikin have also raised prices or are preparing further increases.

The price hikes come as several manufacturers had already increased prices earlier this year, citing rising input costs and supply-chain disruptions.

Thomson India's CEO Avneet Singh Marwah said the consumer durables industry is facing pressure from both higher input costs and supply-chain disruptions. He noted that shipments are experiencing port delays of around 20-30 days, making inventory planning and production more difficult.

Copper prices are a major concern for manufacturers as an AC can require around 3-4 kg of the metal. Blue Star's Managing Director B Thiagarajan said commodity prices have risen amid the war and that growing demand for copper from electric vehicles and data centers is contributing to pressure.