Festive Season Shock: Prices of ACs, TVs and Other Home Appliances to Rise from October 1

Consumers are likely to face a price shock even before the festive season begins. Prices of home appliances such as air conditioners, LED TVs, washing machines and refrigerators are set to increase from October 1. Leading companies are preparing to raise prices by 5% to 8%. Notably, this will be the third price hike in the sector this year.

Industry sources say the main reasons behind the price increase are the sharp rise in the cost of raw materials such as copper, steel and aluminium, higher transportation costs, and fluctuations in currency exchange rates due to the West Asia crisis. AC prices are expected to rise by 5% to 8%, while prices of televisions and washing machines are likely to increase by around 3% to 4%.

Companies including Blue Star, Godrej, Haier and Daikin have already announced price hikes. Bosch Home Comfort, which sells ACs under the LG, Voltas and Hitachi brands, is also reported to have increased prices by around 5%. Blue Star Managing Director B. Thiagarajan said the company had no option but to raise prices due to the increase in raw material costs.

Haier India President N.S. Satish explained that copper prices have risen significantly compared with last year, prompting the company to increase AC prices by 5%.However, experts say old stock may remain available with dealers for another one to one-and-a-half months. As a result, consumers may still be able to purchase some products at the existing prices until Diwali. New prices are expected to come into full effect after Diwali.