Appliance Prices Rise 5-8 Percent, Makers Expect Double-Digit Festive Sales Growth

Appliance manufacturers have forecast a significant boost in sales during the festive season, despite raising prices by between 5-8 percent. This growth is expected to be driven by the demand for high-end products, replacements, financing options, and a rise in consumer confidence. The price hikes mark the third revision this year due to increased material costs linked to metals and crude, higher freight charges, and currency fluctuations.

Premium products are fueling demand, as Onam sales have been strong, promising a positive outlook for Navratri and Diwali. Buyers are opting for larger appliances with advanced features, including energy-efficient and smart connected models, which will likely increase the value of sales despite the higher prices potentially impacting volumes.

Haier India CEO N S Satish anticipates a 30-35 percent increase in festive sales value, with unit sales growing approximately 20 percent. He estimates overall industry growth to be between 10-15 percent. Haier raised the prices of room air-conditioners by roughly 5 percent from October 1, while televisions, washing machines, and other products saw price increases ranging from 2-3 percent.

To support purchases, LG Electronics India anticipates robust festive demand based on promising inquiries leading up to Navratri. The company expects GST rationalization and festive EMI offers to make appliances more affordable, with its Essential Series appealing to first-time buyers in smaller cities.

Whirlpool Mauritius is divesting an 11.23% stake in its home appliances maker through an open market transaction for ₹1,489 crore. Sony India expects festive sales value to rise by 15-20 percent, with its imaging business potentially expanding by more than 30 percent. Premium televisions, larger screens, and audio products should drive demand.

Godrej Appliances expects improving sentiment and upgrade demand to maintain sales after a positive Onam season. They raised air-conditioner prices from October 1, but older inventory may enable shoppers to purchase at previous rates throughout Diwali as new prices take full effect afterward. The festive season typically accounts for 30-40 percent of appliance makers' annual sales, making this period crucial for manufacturers seeking growth despite ongoing cost pressures.