AC Prices in India Set to Rise by 4-5% Due to Supply Issues
India: Indian air conditioner manufacturers are set to increase prices by 4-5% due to rising input costs and supply chain disruptions. The hike, expected soon, is driven by shortages of key components like compressors, copper, and semiconductors, along with higher raw material and logistics costs. Limited availability of compressors, refrigerants, and electronic chips has strained production, while rising copper and aluminum prices have further pushed up manufacturing expenses. Additionally, increased freight and transportation costs have added to the financial burden. With summer approaching, demand for air conditioners is rising, allowing companies to pass on the increased costs to consumers.
Entry-level and mid-range ACs are expected to see the highest price hikes, while premium and inverter models may experience a smaller increase due to higher margins. Consumers planning to purchase an AC are advised to buy before the price revision to avoid paying extra. Major brands like Voltas, Blue Star, Daikin, LG, and Samsung are preparing to adjust their prices, with some absorbing a portion of the increased costs but most expected to pass them on to buyers.
Source: Business Standards