Indian AC Manufacturers to Raise Prices by 5-6% Amid Rising Costs

Raise Prices by 5-6%

India: With the summer season approaching, air conditioning (AC) manufacturers in India are set to increase prices by 5-6% starting April 2025. Leading brands, including Blue Star and LG, are implementing these hikes due to rising import costs, raw material price surges, and the strengthening US dollar. Blue Star has announced a 5% price increase across its product range, pushing the cost of a 1.5-ton, 3-star AC from Rs 35,000-36,000 (USD 420-432) to Rs 39,000-40,000 (USD 468-480). LG has already raised prices by approximately 5%, reflecting broader inflationary pressures and supply chain disruptions.

The Indian AC market is expected to see sales of around 15 million units this season, but ongoing supply chain issues, including reduced imports from China, have widened the gap between demand and supply. The increasing costs of critical components like compressors and raw materials have further driven up prices, making it challenging for manufacturers to maintain lower costs. Consumers can expect higher upfront costs for air conditioners, especially for popular models, and may benefit from purchasing early before further increases take effect.

Source: Etnow news