Room air conditioner prices move up ahead of the peak summer season, with brands like LG Electronics and Hitachi already hiking prices. Dealers told NDTV Profit that LG Electronics and Hitachi have increased AC prices by around 5-7% in March, while Blue Star, Voltas and other brands are expected to follow with price hikes over the next 3-10 days.
The price increase comes as manufacturers attempt to pass on rising input costs and prepare for what is expected to be a strong summer demand season.
Channel checks with dealers indicate that stocking has already picked up in the March quarter, with distributors building inventory in anticipation of both higher demand and further price increases.
Input Cost Pressures Mount
Multiple factors are pushing AC manufacturers to raise prices. A surge in copper prices, a key raw material used in compressors and coils, has increased manufacturing costs. At the same time, the weakening rupee has raised the cost of imported components, many of which are sourced from overseas.
Dealers also point to global supply chain uncertainties, particularly amid ongoing tensions in the Middle East, which could disrupt shipping routes and component availability.
In addition, new energy efficiency norms are adding to production costs as companies upgrade products to comply with stricter standards.
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Summer Demand Expectations
The timing of the price hikes also coincides with forecasts of a hotter-than-usual summer. The India Meteorological Department (IMD) has warned of above-normal temperatures between March and May, which typically boosts air conditioner demand.
Industry executives have already indicated that companies may need to take pricing action.
In an earlier interaction with NDTV Profit, the Managing Director of Blue Star B Thiagarajan had said that AC prices could rise by 10-15% due to commodity inflation and regulatory changes.
Prices Had Fallen Earlier
The latest round of increases comes after AC prices had softened last year. In September, companies had cut prices following the GST reduction on air conditioners to 18% from 28%, which had provided some relief to consumers.
However, with commodity costs rising again and demand expected to surge, manufacturers are now moving to recalibrate pricing ahead of the summer season.
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