Buying An AC, TV Or Fridge This Diwali? Prices To Rise From October 1

The festive shopping season is about to begin, but consumers planning to bring home a new air-conditioner, television, refrigerator or washing machine may have to stretch their budgets.

Several consumer electronics and appliance makers are set to raise prices from October 1. Air-conditioners could become 5-8 per cent more expensive, while some televisions, refrigerators and washing machines may see prices rise by around 3-4 per cent.

For a family waiting for Diwali sales to replace an old TV or upgrade an AC, the timing could not be worse. The industry is already heading into its busiest shopping period of the year.

The October price revisions will mark another round of increases for the sector this year. Manufacturers are facing higher costs for copper, aluminium, steel, crude oil derivatives and freight. Currency movements and supply-chain disruptions are adding to the pressure. 

Why Are Electronics Prices Rising?

The pressure starts much before a product reaches a showroom.

Copper and aluminium are important inputs for air-conditioners and other appliances. Steel is used across several categories, while crude oil derivatives feed into plastics and other components.

Freight has also become more expensive. The ongoing geopolitical conflict has disrupted shipping routes and created uncertainty around the movement of goods.

Some shipments are facing port delays of 20-30 days, affecting inventory planning and production schedules, according to a PTI report. Manufacturers say higher input costs and supply-chain disruptions are making it increasingly difficult to absorb the entire increase themselves. This is particularly important for electronics because many products depend on globally sourced components.

Vijay Sharma, Managing Director, Optoma Technology (India), told NDTV that the supply side remains under pressure even as demand for advanced display and AV products remains healthy. "The ongoing geopolitical conflict is adding another layer of uncertainty to an already interconnected global supply chain, particularly for critical components such as semiconductors, chips and other raw materials."

Sharma added that manufacturers are balancing demand with the availability and cost of critical components. This could keep input costs elevated in the near term, with some of the pressure potentially being reflected in product prices.

Increased copper prices driving costs.

AC Buyers Could Feel The Biggest Impact

Air-conditioners are likely to see some of the sharpest increases. Industry reports indicate that AC prices could rise by 5-8 per cent from October 1. Blue Star has already raised AC prices by 8 per cent, while other brands are also preparing or implementing increases. 

For a Rs 50,000 AC, an 8 per cent increase would mean an additional Rs 4,000 if the entire increase is passed on to the buyer. That can make a difference for middle-class households already budgeting for multiple festive purchases.

TVs, Fridges And Washing Machines May Also Cost More

The price pressure is not limited to ACs. Some manufacturers are raising prices of LED TVs, refrigerators and washing machines by around 3-4 per cent. Others are still assessing the impact of higher costs before deciding on the extent of the increase.

Television makers are also dealing with higher memory-chip costs and more expensive components. According to media reports, Thomson India plans a 10 per cent price increase across categories after October, while Intex has said it is holding off on a broad-based increase for now to support festive demand. 

There Could Still Be A Window For Festive Deals

The price hike does not necessarily mean every product will immediately become more expensive in stores. Dealers have stocked some inventory at older prices ahead of the festive season. This could allow consumers to find discounts or older-price stock even after October 1, at least until such inventory runs out. 

Brands are also expected to use financing schemes, bundled offers and other promotions to keep shoppers interested. 

For consumers, the festive shopping strategy may change. Instead of looking only at the headline discount, buyers may need to compare the final price, old-stock availability, bank offers and EMI costs.