Major appliance makers to raise AC and electronics prices from October 1

Appliance makers are planning to hike prices of air conditioners, LED TVs, washing machines, and other products by 5% to 8% ahead of the peak festival season, effective from October 1.

Leading appliance and consumer electronics makers will raise prices of air conditioners, LED TVs and washing machines from October 1. It is the industry's third round of price increases this year.Why prices are rising?Multiple media reports said manufacturers are grappling with higher costs for copper, steel, aluminium and crude oil derivatives, along with rising freight charges, currency swings and turmoil in West Asia.How much more you will payAir conditioner prices will rise 5-8 percent immediately. Several companies are also raising prices of washing machines, refrigerators and LED TVs by 3-4 percent, while others are still assessing the impact.Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics (SPPL) have confirmed or already made increases of 4-10 percent, PTI said. Industry sources reportedly said LG and Bosch Home Comfort (Hitachi) have raised AC prices by about 5 percent. Blue Star MD B Thiagarajan told PTI that costs are up about 15 percent from last year's festive period. However, GST benefits of around 10 percent will cut the net impact on buyers to roughly 5 percent.Godrej's Kamal Nandi called another hike 'inevitable', saying input costs have risen 8-10 percent since the last revision. Because of pre-buying in August and September, stock bought at older rates should keep retail prices steady through Diwali, with new tags taking full effect afterwards, the report said.

Air-conditioners, LED TVs, and washing machines are expected to become more expensive due to rising input costs. Companies attribute the price increase to higher costs of raw materials and freight. Some manufacturers are concerned that price hikes might dampen festive demand, while others anticipate selling existing inventory at current prices. Price increases are scheduled from October 1, leading to cumulative hikes throughout the coming months.