AC, TV, Fridge Prices To Rise From October: Companies Plan 5-8% Hike Ahead Of Dussehra-Diwali

Festive shopping for home appliances could become more expensive this year as manufacturers prepare another round of price revisions ahead of the Dussehra-Diwali season. Air conditioners are expected to bear the largest increase, while televisions, washing machines and other consumer durables could also see higher price tags as companies grapple with rising manufacturing and logistics costs.

AC, Fridge, TV Prices To Rise From October: Companies Plan 5-8% Hike Ahead Of Dussehra-Diwali

For households waiting for festive offers to buy a new AC, refrigerator or television, discounts may not completely offset the impact of higher base prices. Several companies are looking at increases in the coming weeks, with proposed hikes generally ranging between 5% and 8% in categories facing the strongest cost pressures.

Festive Demand Meets Rising Manufacturing Costs

The price increases are coming at a particularly important point in the industry's annual sales cycle. The period beginning with Onam and extending through Dussehra and Diwali is among the biggest shopping windows for consumer durable companies. Industry estimates suggest that this festive stretch can contribute roughly 30% to 40% of annual sales.

Manufacturers, however, are entering this period with their cost structures under pressure. Copper has become a major concern for cooling-product makers, while aluminium, steel and plastic are adding to expenses across a wider range of appliances. Higher freight costs and imported components have further complicated the situation.

The result is a difficult balance for manufacturers: keeping prices unchanged could squeeze margins, while passing the entire cost increase to customers could affect demand during the crucial festive period.

AC Buyers Could Face Highest Impact of Price Hike

Among major home appliances, air conditioners are facing particularly strong cost pressure because of their dependence on copper. The metal is extensively used in AC components, making changes in global copper prices directly relevant to manufacturers.

Haier India President NS Satish said the company intends to increase room AC prices by around 5% from October 1. He indicated that another revision could be considered after Diwali, followed by a possible increase in January if raw material costs continue to remain high.

The increase in copper prices has been significant, according to Satish. He said copper was trading at around USD 8,000-9,000 per metric tonne last year and has now reached approximately USD 14,500. A typical air conditioner uses about 3 kg to 4 kg of copper, increasing the sensitivity of the product to movements in the metal's price.

Satish also indicated that Haier is considering smaller price increases of around 2% to 3% for products including LED televisions and washing machines.

Daikin Has Already Raised AC Prices

Some manufacturers have moved ahead with revisions rather than waiting for October. Daikin Airconditioning India increased AC prices by around 8% to 10% from September 16. The currency factor is also important because the industry relies on imported components and inputs linked to international prices. A stronger dollar can therefore increase the rupee cost of sourcing these materials.

Blue Star Says AC And Deep Freezer Prices Have Already Increased

Blue Star has also implemented price increases across air conditioners and deep freezers. Managing Director B Thiagarajan said prices have risen by 5% to 8% as commodity costs have climbed.

According to Thiagarajan, AC prices are now around 15% higher than they were during last year's festive season. However, the effective burden on customers could be moderated to some extent by GST-related benefits of around 10%.

Cost Pressure Extends Beyond Air Conditioners

While ACs are expected to see the most visible increase, other consumer durable categories are also being affected by the same cost environment.

Steel and aluminium are important inputs for several large appliances, while plastics and crude-linked materials are used extensively in components and packaging. Higher transportation and freight expenses have added another layer to manufacturers' overall costs.

Companies including Godrej Appliances, Haier, Daikin, Blue Star and Super Plastronics have indicated price increases across various categories. Panasonic is still assessing the situation before deciding on its next move. Industry sources have also indicated that LG and Bosch Home Comfort, which operates Hitachi-branded ACs, have raised AC prices by around 5%.

The actual increase may differ between brands and products depending on existing inventory, input requirements and how much of the additional cost each manufacturer chooses to absorb.