New Delhi: Consumers planning to buy an air-conditioner, television, refrigerator or washing machine this festive season may have to spend more. Several consumer electronics and appliance makers are set to raise prices from October 1. Air-conditioners could become 5-8 per cent costlier, while some televisions, refrigerators and washing machines may see increases of around 3-4 per cent.
The revision comes just as the industry heads into its busiest shopping period of the year. It will mark another round of price increases for the sector this year. Manufacturers say they are facing higher costs for copper, aluminium, steel, crude oil derivatives and freight, while currency movements and supply-chain disruptions are adding to the pressure.
Why are electronics prices rising?
Copper and aluminium are key inputs for air-conditioners and other appliances. Steel is used across several categories, while crude oil derivatives feed into plastics and other components.
Freight has also become more expensive. The ongoing geopolitical conflict has disrupted shipping routes and created uncertainty around the movement of goods. According to a PTI report, some shipments are facing port delays of 20-30 days, which is affecting inventory planning and production schedules. Manufacturers say the combination of higher input costs and supply-chain disruptions is making it increasingly difficult to absorb the entire increase themselves. This is particularly relevant for electronics, as many products depend on globally sourced components.
Vijay Sharma, Managing Director, Optoma Technology (India), told Media that the supply side remains under pressure even as demand for advanced display and AV products stays healthy. “The ongoing geopolitical conflict is adding another layer of uncertainty to an already interconnected global supply chain, particularly for critical components such as semiconductors, chips and other raw materials,” he said.
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Sharma added that manufacturers are balancing demand with the availability and cost of critical components. This could keep input costs elevated in the near term, with some of the pressure potentially being reflected in product prices.
AC buyers could see the biggest impact
Air-conditioners are likely to see some of the sharpest increases. Industry reports indicate that AC prices could rise by 5-8 per cent from October 1. Blue Star has already raised AC prices by 8 per cent, while other brands are also preparing or implementing increases.
For a Rs 50,000 AC, an 8 per cent increase would mean an additional Rs 4,000 if the entire increase is passed on to the buyer. That can make a difference for middle-class households already budgeting for multiple festive purchases.
TVs, fridges and washing machines may also cost more
The price pressure is not limited to ACs. Some manufacturers are raising prices of LED TVs, refrigerators and washing machines by around 3-4 per cent, while others are still assessing the impact of higher costs before deciding on the extent of the increase.
Television makers are also dealing with higher memory-chip costs and more expensive components. According to media reports, Thomson India plans a 10 per cent price increase across categories after October, while Intex has said it is holding off on a broad-based increase for now to support festive demand.
Window for festive deals may remain
The price hike does not necessarily mean every product will become more expensive in stores immediately. Dealers have stocked some inventory at older prices ahead of the festive season, which could allow consumers to find discounts or older-price stock even after October 1, at least until that inventory runs out.
Brands are also expected to use financing schemes, bundled offers and other promotions to keep shoppers interested. Buyers may therefore need to look beyond the headline discount and compare the final price, old-stock availability, bank offers and EMI costs.