From ACs to TVs, Diwali shopping gets a price shock

As Diwali approaches, electronic appliances such as air-conditioners, televisions, refrigerators, and washing machines are expected to become more expensive. Major manufacturers like LG, Daikin, Samsung, Voltas, Bosch, Havells, and Godrej have announced price hikes of up to 10% from October 1. This marks the third increase this year, with cumulative price hikes across various categories reaching 16-18% since January.

The price revisions are necessary due to a sharp rise in input costs, including copper (up 34%), resin (17%), steel (24%), and aluminium (16%). Higher logistics and energy costs, as well as adverse foreign-exchange movements, have also contributed to the cost increase. Despite absorbing these pressures, companies are implementing the price increases to maintain product quality, supply stability, and long-term sustainability.

LG Electronics India, the country's largest consumer electronics maker, cited rising input costs such as copper, resin, steel, and aluminium, along with higher logistics and energy costs, as reasons for the price increase. Tata-owned Voltas plans a 5-7% increase in AC prices, while Daikin India will raise prices by 6-10%. Godrej and Havells have communicated 4-6% and 5% increases, respectively, while Bosch Home Comfort has also informed the trade of an upward revision of prices.

Samsung has already increased television prices across its 43-inch to 75-inch range by ₹1,000-10,000. The prolonged West Asia crisis and renewed raw-material inflation have forced companies to reassess their strategy of limiting pre-Diwali increases to around 2-3% to avoid hurting festive demand. The price hikes come just before the peak festive season, when sales of consumer electronics and appliances typically soar, accounting for 25-30% of annual off-take.