New Delhi: Consumer durable firms, including Haier, Whirlpool, Panasonic, Godrej Appliances and Daikin, are increasing prices of their products by up to 5 per cent following the withdrawal of excise duty sops, coupled with high input costs.
"With excise duty concessions ending, price hike was inevitable. We will also increase our prices in the range of 3-5 per cent depending on models," Haier India president Eric Braganza told PTI.
The price hike is effective on new stocks, he said.
Another major player in the consumer durables segment, Godrej Appliances, is also mulling a similar step.
"We are revising prices of our products by 3-5 per cent depending on different models," Godrej Appliances business head and executive vice president Kamal Nandi said.
Two major factors have led to price hike - a 2 per cent increase in excise duty and the weakening of rupee against US dollar that had increased input costs, he added.
The government decided against extending excise duty concessions given to the consumer durables industry from December 31. Excise duty on the sector is now at 12 per cent, up from 10 per cent.
Manish Sharma, managing director, Panasonic India and South Asia, said the government's decision of not extending excise duty cut on consumer durables will hit the buyer sentiment and impact sales.
"This rollback of the excise duty has led to an increase in product prices as the burden has been passed on to the consumers," he said.
"While the new government has made promising policies, promoting growth of the sector, this move will definitely hit consumer sentiment and impact sales."
Panasonic has increased the price of air conditioners by 3 per cent while the price of home appliances has been increased by 2-3 per cent.
A Whirlpool senior official said the company will increase prices by about 2-3 per cent from mid-January.
Daikin Airconditioning India will increase prices by an average 4 per cent across products in the residential, light commercial and commercial HVAC (heating, ventilating, and air conditioning) categories.
"Although we have been trying to offset the pressure created by the depreciating Rupee and excise duty by holding back prices of our product range, but the continual pressure created by the current economic conditions are forcing us to calibrate our existing prices," Daikin Airconditioning India managing director Kanwal Jeet Jawa said.
Its ACs cost between Rs 29,600 and Rs 1,63,700.