Prices of TVs, ACs, and refrigerators to rise from October 1; electronic goods to become costlier for the third time this year..

Air conditioners (ACs), LED TVs, washing machines, and other consumer electronics could become more expensive in the country ahead of the festive season. Major consumer electronics companies are preparing to hike product prices by 5 to 8 percent due to the sharp rise in raw material costs, such as copper and steel.

According to the companies, price hikes have become necessary due to rising costs of copper, aluminum, steel, plastic, and crude oil-related products, alongside increased freight charges and currency fluctuations. This will mark the third time this year that consumer electronics companies are raising prices.

How much will ACs cost?
While AC prices are likely to rise by about 5 to 8 percent, some companies are planning to increase prices for washing machines, refrigerators, and LED TVs by 3 to 4 percent. However, some companies are still assessing the situation.

Many companies believe that raising prices could impact demand. Conversely, others feel the impact will be limited, as dealers and distributors already hold stocks purchased at older price points. Several companies, including Blue Star, Godrej Appliances, Haier, Daikin, and Super Plastronics, have already announced price hikes across various categories.

What is the reason for the price hike?
LG and Bosch Home Comfort—which handles the Hitachi brand of air conditioners—have also raised AC prices by approximately 5 percent. Panasonic is currently assessing the situation regarding a potential price hike.

Blue Star Managing Director B. Thiagarajan stated that prices for ACs and deep freezers have already been raised by 5 to 8 percent due to soaring commodity prices. He noted that the costs of various raw materials, including copper, steel, and plastic, have surged, and the company has raised prices three times so far this year. 

**8-10% Rise in Commodity Costs**
Kamal Nandi, Business Head and Executive Vice President at Godrej Enterprises Group, stated that commodity costs have risen by 8 to 10 percent since the last price review. Consequently, a price hike of 5 to 7 percent across various categories has become inevitable.
However, he noted that existing stock purchased at older rates might remain available in the market for another month to a month and a half.

**Haier India’s Announcement**
N.S. Satish, President of Haier India, announced that the company would raise air conditioner prices by approximately 5 percent starting October 1. Prices for other products, such as LED TVs and washing machines, will also see an increase of 2 to 3 percent. He added that if raw material costs continue to rise, further price hikes could be implemented in December and January.
According to Satish, the price of copper has surged from around $8,000–$9,000 per tonne last year to approximately $14,500. Since an average air conditioner utilizes three to four kilograms of copper, this is directly impacting manufacturing costs.

**Sharp Rise in Copper Prices**
Kanwaljeet Jawa, Chairman and Managing Director of Daikin Airconditioning India, stated that the company has already raised prices by 8 to 10 percent effective September 16. He noted that copper prices have increased by about 25 to 35 percent, and the strengthening dollar has further intensified cost pressures on companies.
Meanwhile, Super Plastronics Private Limited (SPPL) plans to increase TV prices by approximately 7 percent after October. According to the company, prices for other home appliances have already been raised by 4 to 5 percent. 

A Cause for Concern for the Industry
Another concern for the industry is that rising prices could impact festive demand. Typically, sales of consumer electronics and home appliances surge between Navratri and Diwali, with companies offering attractive discounts and deals. In this context, higher prices could influence customers' purchasing decisions.

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