The increasing cost of raw materials, global freight, and commodities have forced consumer durable companies to increase the prices of their ACs. In fact, several reports claim that the companies have already increased prices by three to four percent in April.
“We increased the prices by 5-6 percent in the last 4-5 months. With rising global freight, cost of commodities, and raw materials, we might have to consider a price hike again after May,” Satish NS, President, Haier Appliances India was quoted by FE.com.
This is the second time in three months when the prices of air conditioners have been increased, earlier 5-8 percent was raised by companies in January this year. Meanwhile, Financial Express reported that several companies have already increased their prices and others might increase their price in the coming months.
“The way things are progressing on the commodity and other fronts, we have to take up prices by another 3-4 percent by April,” Gurmeet Singh, Chairman and Managing Director, Johnson Controls-Hitachi Air Conditioning India Ltd, was quoted by the same publication.
Demand For Air Conditioners
It is important to note that even though prices have been increased, the demand for air conditioners has not been decreased due to the early summer and rising temperature in April.
“Also, there is a big surge for a replacement since a lot of consumers are upgrading their cooling products for more energy efficiency,” Voltas spokesperson was quoted by FE. Adding that the industry will grow this year in terms of both value and volume.
Meanwhile, a new report by Axis My India says that the spending on AC, cars, and refrigerators has been increased by eight percent this month, earlier it was only five percent.
Besides, the survey pointed out that 18% of customers are planning to buy or replace air-conditioners and refrigerators this summer. However, 65 percent are maintaining caution.
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