Consumer electronics and appliance makers are set to raise prices of air conditioners, LED TVs, washing machines and other products by 5-8% from October 1, as higher costs of copper, steel, aluminium and crude derivatives, along with currency volatility and rising freight expenses, squeeze margins, according to industry executives cited by PTI.
The increase comes just ahead of the peak festive shopping season and will mark the industry's third round of price hikes in 2026.
Air-conditioner prices are expected to rise 5-8%, while some manufacturers are also raising prices of washing machines, refrigerators and LED TVs by 3-4%, PTI reported, while some companies are still assessing the impact of higher input costs before taking a final call.
Companies including Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have already announced or confirmed price increases of 4-10% across categories. Panasonic, meanwhile, is evaluating market conditions before deciding on a hike.
According to sources cited by PTI, LG and Bosch Home Comfort, which owns Hitachi-branded air-conditioners, have also raised AC prices by around 5%.
Why are electronics' prices rising
Blue Star managing director B Thiagarajan said prices of ACs and deep freezers have already gone up 5-8% because of higher commodity costs.
"All the commodity prices have been going up because of the war. Copper, steel and plastics have all become costlier," he told the news agency, adding that this was the third price increase undertaken by the company this year.
Compared with last year's festive season, costs have increased by around 15%, Thiagarajan said. However, with GST benefits of about 10% now available to consumers, the net increase for buyers would be around 5%, he added.
Kamal Nandi, business head and executive vice president, Appliances Business, Godrej Enterprises Group, said another industry-wide price increase had become "inevitable" after commodity prices rose 8-10% since the previous revision.
"Price hikes of 5-7 per cent across categories will happen. The timing may differ from brand to brand, with some implementing it from October and others from November, but it has to happen," he said.
Nandi, however, said consumers could continue to find products at existing prices during the festive season because dealers and distributors had stocked inventory before the price increases.
"There are pipelines which will last for about a month to one-and-a-half months. Diwali should largely get covered with old-price inventory. Post-Diwali, the new prices will certainly take effect," he added.
Haier plans multiple price increases
Haier India president NS Satish said the company plans to raise prices of room air-conditioners by around 5% from October 1. It could undertake further increases after Diwali and again in January if input costs remain elevated, he told PTI.
"If we avoid taking price hikes, we will lose money. If we increase prices, sales may be slightly impacted, but there is no choice," he said.
Haier also plans to increase prices of LED TVs, washing machines and other categories by 2-3%.
Satish said copper prices had risen sharply over the past year, increasing manufacturing costs, particularly for air-conditioners where copper is a key component.
Copper, which was priced at $8,000-9,000 per metric tonne last year, has now touched $14,500, he said. An air-conditioner requires around 3-4 kg of copper.
Haier expects to implement a cumulative 15% increase between now and January — 5% from October 1, another 5% around December and a further 5% in January.
Daikin, TV makers also raise prices
Daikin Airconditioning India chairman and managing director Kanwaljeet Jawa said the company had already raised prices by 8-10% from September 16.
"Copper prices have gone up by almost 25-35 per cent. The dollar is strengthening and commodity prices continue to rise. Companies are under tremendous pressure," he said.
Jawa said consumer demand remained strong for now, although prolonged cost pressures could affect the market.
"I don't know what will happen going forward, but everybody is aware of the reality in the marketplace right now. It might affect things in the long term if the situation doesn't improve," he said.
Super Plastronics Pvt Ltd (SPPL), which manufactures and markets television brands including Thomson, Kodak and Blaupunkt in India, plans to raise TV prices by around 7% after October. Prices of its other appliances have already increased 4-5%, according to PTI.
SPPL director Avneet Singh Marwah said higher prices could weigh on festive demand, particularly because consumers typically expect discounts and promotional offers during the season.
"Global instability and rising costs will definitely have some impact on consumer sentiment," he said.
Panasonic Life Solutions India head of product marketing and planning (AC category) Abhishek Verma said the company was monitoring market conditions before deciding on any increase.
"The industry continues to witness unprecedented cost pressures and we are evaluating the situation carefully," he said.
Videotex director Arjun Bajaj said higher freight costs and supply chain disruptions could establish a new pricing benchmark after Diwali.
"Television prices for smaller screen sizes could rise by up to 20 per cent, while larger screen sizes may see increases of up to 10 per cent, depending on screen size," he said.
Festive demand faces a test
The price increases come at a crucial time for the consumer durables industry. The festive period from Onam through Dussehra and Diwali typically accounts for 30-40% of annual sales for appliance manufacturers, according to sector reports cited by PTI.
Manufacturers are divided on how much the higher prices will affect demand. Some expect the impact to be limited because distributors have already stocked products at older prices through pre-buying schemes in August and September. Others expect consumers to become more cautious as prices rise.
An InMobi Advertising survey also points to a more mixed festive spending picture in 2026. Its annual report found that 77% of Indian consumers planned to increase their festive shopping budgets, down from 83% last year. At the same time, the share of consumers planning to spend more than Rs 50,000 increased by 2 percentage points.
The survey covered 1,110 men and women using Android and iOS devices between August 7 and 11, 2026.
"There is a 2 percentage point increase in consumers saying they will spend in the top bracket of festive spending which is above Rs 50,000," the report said.
The report found that three in five shoppers planned to spend more than Rs 10,000, while around 60% expected to make their purchases within a month of the festivals. Nearly 29% planned to shop just a week or less before the celebrations begin.
Spending patterns also differed across consumer groups. InMobi said 22% of Android users planned to spend between Rs 25,000 and Rs 50,000, compared with 15% of iOS users. Both groups had equal representation in the above-Rs 50,000 bracket.
"From smart search suggestions (89 per cent) to virtual product try-ons (81 per cent), AI-assisted brand discovery and decision-making are gaining significant traction, with millennials demonstrating greater enthusiasm for AI-based recommendations for festive looks and products than Gen Z by 10 percentage points," the report said.
The festive basket is also broadening beyond traditional categories such as apparel and footwear.
"While apparel and footwear remain staple festive purchases (50 per cent), categories like jewelry (40 per cent) and grocery/daily essentials (37 per cent) are also seeing strong purchase intent," the report said.
Demand has held up despite earlier price hikes
The latest price increases also come against a backdrop of strong festive demand in the first phase of the season.
According to an ET Bureau report, consumer demand in India reached a five-year high during the initial festive period covering Onam, Rakshabandhan and Ganesh Chaturthi. Manufacturers across home appliances, automobiles and other categories reported stronger sales despite earlier price increases.
In consumer durables, volume sales of refrigerators, air-conditioners and washing machines rose 12-15% year-on-year during the first phase, led by Onam, while value sales increased 18-23%, according to manufacturers cited by ET Bureau.
LG Electronics director Sanjay Chitkara said the company saw strong sales during Onam and Ganesh Chaturthi, particularly in large-screen TVs, four-door refrigerators, large washing machines and ACs.
Demand had strengthened across tier-I, tier-II and tier-III markets, while online platforms, quick-commerce companies and food delivery services had recorded growth during the festive period, according to an ET report.
Kamal Nandi of Godrej Enterprises Group said market sentiment had improved across tier-I, II and III markets, although the mass segment continued to face some pressure from inflation.
"While the mass segment is facing some challenges due to the inflationary trend, the premium segment is doing well with deeper penetration of retail chains and ecommerce," he told ET Bureau.
For appliance makers, the question is whether the strong festive momentum can absorb another round of price increases. While existing channel inventory could delay the full impact of higher prices until after Diwali, continued increases in commodities, freight and other inputs could keep pressure on manufacturers and consumers beyond the upcoming festive season.
(With inputs from PTI)
