Major manufacturers of home appliances and consumer electronics are preparing to raise prices on air conditioners, LED televisions, washing machines, and other goods by 5–8% starting October 1. The reason cited for this decision is the increased cost of metals and derivative raw materials, as well as currency fluctuations and transportation expenses.
Before the start of the holiday peak season, the industry will face the third wave of price increases in 2026. Manufacturers assert that sustained inflation in key components such as copper, aluminum, steel, and petroleum derivatives, combined with increased freight costs, has made further price adjustments inevitable.
According to industry leaders, air conditioner prices will rise by 5–8%, while some companies are also increasing the cost of washing machines, refrigerators, and LED televisions by 3–4%, although others are still assessing the impact of this change.
Some companies fear that the price hike could negatively affect demand during the holidays, but others believe the effect will be limited since dealers and distributors already purchased stock at old prices in August and September under pre-purchase programs.
Companies such as Blue Star, Godrej Appliance, Haier, Daikin, and Super Plastronics have already announced or confirmed price increases ranging from 4% to 10% across various categories. Panasonic, however, stated that it is still studying the situation before making a decision to increase prices.
According to sources, LG and Bosch Home Comfort, which owns Hitachi-branded air conditioners, have also increased air conditioner prices by approximately 5%.
B Tiagarajan, Managing Director of Blue Star, stated that prices for air conditioners and freezers have already risen by 5–8% due to the increased cost of raw materials. He noted that all raw material prices are rising because of the war, making copper, steel, and plastic more expensive, and this is the third price increase for the company this year.
Comparing prices to the last holiday season, Tiagarajan pointed out that overall costs have increased by about 15%, but thanks to VAT discounts of about 10% for consumers, the net increase for buyers will be around 5%.
Kamal Nandi, Head of Business and Executive Vice President for Home Appliances at Godrej Enterprises Group, stated that another industry-wide round of price increases has become 'unavoidable' after raw material prices rose by 8–10% since the last review. He predicts a 5–7% price increase across different categories, although the timing may vary among different brands.
Nevertheless, Nandi added that consumers will be able to purchase goods at current prices during the holidays, as stock purchased before the increase remains in distribution channels. He specified that the stock will last about one to one and a half months, and Diwali will be largely covered by goods at the old price, with new prices taking effect after Diwali.
NS Satish, President of Haier India, stated that the company incurs losses if it does not raise prices, and although the price increase may slightly affect sales, there is no choice. He announced plans to raise RAC prices by approximately 5% from October 1, as well as possible further increases after Diwali and in January if raw material costs continue to rise. Furthermore, he confirmed a 2–3% price increase in other categories such as LED televisions and washing machines.
Satish emphasized that copper prices have risen significantly over the past year, sharply increasing production costs, especially in the air conditioner segment where copper is a critical component. He noted that Haier plans a cumulative increase of approximately 15% by January: 5% from October 1, another 5% around December, and an additional 5% in January. He also mentioned that copper prices rose from US$8,000–$9,000 per metric ton last year to US$14,500 and are expected to continue rising, with an air conditioner requiring 3–4 kg of copper.
According to industry reports, the holiday period covering Onam, Dussehra, and Diwali typically accounts for 30–40% of the annual sales volume of home appliance manufacturers.
Kanwaljeet Jha, Chairman and CEO of Daikin Airconditioning India, reported that the company has already raised prices by 8–10% since September 16. He explained this by stating that copper prices have risen by almost 25–35%, and the strengthening dollar and rise in raw materials are putting immense pressure on companies. Consumer demand remains good for now, but Jha warned that long-term consequences could arise if the market situation does not improve.
Super Plastronics Pvt Ltd (SPPL), which manufactures and sells Thomson, Kodak, and Blaupunkt televisions in India, plans to raise TV prices by approximately 7% after October, while home appliance prices have already risen by 4–5%. SPPL Director, Avnit Singh Marwah, believes that higher prices may affect holiday demand, as consumers usually expect discounts and promotions during this season. He noted that global instability and rising costs will undoubtedly impact consumer sentiment.
Abhishek Verma, Head of Product Marketing and Planning at Panasonic Life Solutions India (air conditioner category), stated that the company is closely monitoring market conditions to find a balance between pricing and demand. He emphasized that the industry continues to face unprecedented cost pressures, and the company is carefully evaluating the situation.
Videotex Director, Arjun Bajaj, predicts that increased transportation costs and supply chain disruptions will lead to a new price benchmark after Diwali. He suggested that smaller television prices could rise up to 20%, and larger ones up to 10%, depending on screen size.