Are Appliance Prices Going Up This Week? What You Need to Know Before Diwali

Festive shopping in India could get more expensive this year, with several leading appliance and television manufacturers preparing to increase prices from October. Air-conditioners are expected to see the steepest hikes of up to 8%, while refrigerators, washing machines and LED TVs could also become costlier ahead of Diwali.

Rising prices of copper, steel, aluminium, plastics and freight are reportedly prompting manufacturers to pass on higher costs to consumers. However, shoppers may still find some relief during the festive season, as retailers are expected to continue selling older inventory purchased at pre-hike prices.

AC, Refrigerator, Washing Machine and TV Price Hikes Expected From October

Air-conditioner prices in India are expected to increase by around 5-8% from October 1, while some manufacturers are considering hikes of 3-4% for refrigerators, washing machines and LED TVs. Several companies, including Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics, have confirmed or indicated price revisions across their product categories.

Blue Star Managing Director B Thiagarajan said the company has already increased prices of air-conditioners and deep freezers by 5-8% due to rising commodity costs. Copper, steel and plastics have become more expensive, prompting the company to implement its third price hike this year. According to Thiagarajan, input costs are now around 15% higher than during the previous festive season.

Godrej Appliances Business Head and Executive Vice-President Kamal Nandi also indicated that further price increases are likely, following an 8-10% rise in commodity prices since the previous revision. He expects hikes of around 5-7% across categories, although the timing may vary between manufacturers.

Diwali Shoppers May Still Find Appliances at Older Prices

Despite the upcoming price increases, consumers may not immediately feel the full impact during the festive shopping season. Retailers and distributors stocked up on appliances at older prices through pre-buying schemes in August and September. This inventory could help keep prices relatively stable through much of Diwali.

According to Nandi, existing inventory could last around one to one-and-a-half months, meaning shoppers may still find products at pre-hike prices during the festive period. However, the revised prices are expected to become more noticeable after Diwali.

The timing is significant, as the Onam-to-Diwali period typically accounts for around 30-40% of annual appliance sales for many manufacturers.

Why Are Appliance and TV Prices Increasing in India?

Rising commodity prices, higher freight charges, currency fluctuations and global supply disruptions are putting pressure on manufacturers. The ongoing West Asia crisis has added to these challenges, making it more expensive to source and transport components.

Copper is a particularly significant factor for air-conditioners. Haier India President NS Satish said copper prices have climbed from around $8,000-$9,000 per metric tonne last year to approximately $14,500. With a typical air-conditioner requiring 3-4kg of copper, the increase is adding considerably to manufacturing costs.

Haier plans to raise room air-conditioner prices by around 5% from October 1. The company has also confirmed a 2-3% increase for televisions, washing machines and other products, while leaving open the possibility of further hikes after Diwali and in January if input costs remain high.

Daikin Airconditioning India, meanwhile, increased prices by 8-10% from September 16. Its Chairman and Managing Director Kanwaljeet Jawa cited rising copper prices, a stronger US dollar and higher commodity costs as key reasons for the revision.

TV Prices Could Also Increase After Diwali

Television buyers may also have to pay more as manufacturers adjust their prices to account for rising production and logistics costs. Super Plastronics, which sells Thomson, Kodak and Blaupunkt televisions in India, plans to increase TV prices by around 7% after October.

Videotex has also warned that smaller-screen televisions could become more expensive if freight and supply-chain pressures persist.

For consumers planning to purchase an air-conditioner, refrigerator, washing machine or television, the availability of older inventory could make the festive season an important shopping window. However, buyers should compare actual selling prices and available discounts, as the extent of savings will vary by retailer, model and stock availability.