Your AC is about to become costlier soon
What's the story
Leading air conditioner manufacturers in India are planning to raise their prices by 5-15%. The hike is aimed at offsetting the continuous increase in raw material and supply chain costs. The price adjustments will be implemented between February and April, just before the peak summer season when demand typically surges. Major players like Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi Heavy Industries have announced price hikes across their models.
Cost factors
Daikin India to increase prices by up to 12%
The price hikes are largely driven by the rising input costs of key raw materials like copper, a depreciating rupee, new energy-efficiency norms, and increased freight charges. Daikin India will hike prices by up to 12% from April. Its Chairman & Managing Director Kanwaljeet Jawa said the new energy norms have made products more efficient; he said rising costs are due to higher material prices and global uncertainties.
Sales forecast
Industry executives optimistic about strong sales this year
Despite the price hikes, industry executives are optimistic about strong sales this year. They expect a hot summer and improved energy savings from new star-rated models to drive demand. Blue Star's Managing Director B Thiagarajan said they have already hiked prices by 8-10% in mid-February but old-priced inventory is still in the market. He expects a new batch of higher-priced products will take some time to reach consumers.
Corporate response
Voltas and LG also announce price hikes
Tata Group's Voltas, a market leader, has also announced a 5-15% hike in its room air conditioner prices. The company cited rising copper prices, a weakening rupee, and new energy-efficiency standards as reasons for the decision. LG Electronics India has also hiked prices by about 7% for 3-star models and around 9-10% for 5-star models due to the new energy norms and high input costs.