AC Prices to Rise 5-8% as Commodity Costs Squeeze Margins

As the festive season approaches, Indian consumers may face higher prices for air conditioners, washing machines, refrigerators, and LED TVs. The latest price hike, which marks the third round of price adjustments by the industry in 2026, is attributed to rising commodity and freight costs. The West Asia crisis has led to sustained increases in copper.

Aluminium, steel, and crude oil derivatives, as well as higher freight costs and currency volatility.

According to Blue Star Managing Director B Thiagarajan. Prices of ACs and deep freezers have already increased by 5-8% due to higher commodity costs. While the GST benefits of about 10% are now available to consumers, the net impact for buyers would be roughly 5%.

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Thiagarajan attributed the price hikes to the ongoing war, which has driven up commodity prices.

Godrej Appliances has also announced price increases. With Business Head and Executive Vice President Kamal Nandi stating that price hikes of 5-7 per cent across categories are inevitable. Nandi noted that the timing of price increases may differ from brand to brand.

With some implementing them from October and others from November. However, it is clear that companies see more price hikes ahead.

Haier India President NS Satish has confirmed that the company has little choice but to raise prices as input costs continue to climb. Satish stated that if the company avoids taking price hikes, it will lose money. The company plans to raise prices by 5% from October 1.

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Super Plastronics Pvt Ltd, which manufactures and markets television brands including Thomson, Kodak, and Blaupunkt in India, plans to increase TV prices by around 7% after October. The company's Director Avneet Singh, Marwah noted. that global instability and rising costs will definitely have some impact on consumer sentiment.

Daikin Airconditioning India Chairman and Managing Director Kanwaljeet Jawa has also confirmed that the company will raise prices due to rising input costs. Life Solutions India Head and Product Marketing Director, the company is evaluating the situation and will make necessary adjustments.

The price hikes are expected to have a significant impact on festive demand, with consumers facing higher prices for essential appliances. However, with the GST benefits now available, the net impact for buyers will be roughly 5%. As the festive season approaches, consumers are advised to plan accordingly and consider the price hikes when making their purchases.