New Delhi: If you are planning to buy a new AC, TV, refrigerator, or washing machine for your home during the festive season, your budget might need to increase. Several consumer electronics and home appliance companies are preparing to hike product prices starting October 1. Air conditioner (AC) prices are likely to see the biggest impact, with a potential increase of around 5 to 8 percent. Meanwhile, prices for TVs, refrigerators, and washing machines are also expected to rise by approximately 3 to 4 percent.
Price adjustments due to rising costs
According to industry reports, companies are grappling with rising costs for raw materials and logistics, including copper, steel, aluminum, plastic, and crude oil. Due to the increased expenses associated with production and supply, companies are preparing to pass on a portion of these costs to consumers.
AC prices to rise by 5 to 8 percent
Those planning to buy an AC are likely to feel the biggest impact. Reports indicate that several companies plan to raise prices starting in October. AC prices could go up by approximately 5 to 8 percent.
For instance, if an AC currently costs ₹40,000, a 5 percent price hike would increase the cost by about ₹2,000. An 8 percent hike could raise the price by approximately ₹3,200. However, the actual price increase may vary depending on the brand, model, and features.
TVs, refrigerators, and washing machines may also get costlier
Apart from ACs, prices for LED TVs, refrigerators, and washing machines are also likely to rise. According to reports, some companies are preparing to increase prices in these categories by around 3 to 4 percent.
However, the price hike will not be uniform across all companies and models. Some companies might choose to pass on only a portion of the increased costs to consumers. Rising Costs: From Copper to Logistics
The manufacturing of consumer electronics and home appliances involves various raw materials. Copper plays a crucial role in the production of air conditioners (ACs). In addition to the rising costs of inputs like steel, aluminum, and plastic, expenses related to transportation and logistics have also increased.
Amidst these rising costs, companies have long been trying to strike a balance between pricing and profit margins. Now, preparations are underway to revise product prices ahead of the festive season.
Prices Won’t Rise Everywhere Immediately from October 1
Even though the new prices come into effect on October 1, it does not necessarily mean that all products will become more expensive at every store from that very day. Existing market inventory may continue to sell at the old prices. The impact of the price hike is likely to become more apparent once the old stock is exhausted and fresh consignments—priced at the new rates—arrive.
Meanwhile, companies often provide bank offers, exchange bonuses, and other discounts to attract customers during Navratri and Diwali. Consequently, despite the higher MRP, customers might still find relief on certain products through these offers.
Comparing Prices Before Buying Is Essential
If you plan to purchase an AC, TV, refrigerator, or washing machine in the near future, comparing prices before and after October 1 could be beneficial. Instead of focusing solely on the MRP, it is better to consider the final price after accounting for bank discounts, exchange bonuses, and festive offers.
Thus, making an informed purchase decision before the festive shopping spree requires comparing prices across various physical stores and online platforms.
