Your Diwali shopping is about to get more expensive

Expect a price hike for your Diwali shopping as consumer electronics and appliances are set to become more expensive from October 1. The industry is bracing for a third round of price increases in 2026, with air conditioner prices expected to rise by 5-8% and some manufacturers even raising the prices of washing machines, refrigerators, and LED TVs by 3-4%.

The hike is attributed to higher costs of copper, steel, aluminium, and crude derivatives, as well as currency volatility and rising freight expenses squeezing profit margins.

Companies like Blue Star, Godrej Appliances, Haier, Daikin, and Super Plastronics have already announced or confirmed price increases of 4-10% across various product categories. Panasonic, however, is still evaluating market conditions before deciding on a hike. LG and Bosch Home Comfort, which owns Hitachi-branded air conditioners, have also raised AC prices by around 5%.

Industry executives attribute the increase to higher commodity costs, driven by the war, with copper, steel, and plastics becoming increasingly expensive. This price hike marks the third increase undertaken by companies this year. Compared to the previous festive season, costs have risen by around 15%, but consumers can still find products at existing prices during Diwali due to suppliers stocking inventory before the price increases.

The festive period is crucial for the consumer durables industry, accounting for 30-40% of annual sales. Manufacturers are divided on the extent to which higher prices will affect demand, with some expecting a limited impact on festive sales.