Air-conditioner and television price hikes planned for October are turning India’s festive shopping season into a test of how much household demand can absorb higher input costs. Consumer electronics and appliance manufacturers are preparing increases of 5-8% across air-conditioners and selected products, while some televisions, washing machines and refrigerators are expected to become 3-4% costlier. The immediate impact may be softened by old-price inventory held by dealers, but the industry’s own guidance suggests that the full effect will emerge after Diwali if commodity and freight costs remain elevated.
The increase is not an isolated pricing decision by one manufacturer. It is the third round of price hikes by some companies this year, according to executives cited in the report. Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have either announced or confirmed increases across categories. LG and Bosch Home Comfort, which owns Hitachi-branded air-conditioners, have also raised air-conditioner prices by around 5%, while Panasonic is still evaluating market conditions.
This makes the development relevant beyond the consumer durables aisle. Air-conditioners, refrigerators, washing machines and televisions are increasingly tied to household comfort, work, education and urban living. The pricing of these goods reflects not only retail strategy but also the vulnerability of India’s consumer economy to imported commodities, currency movements, freight disruptions and the timing of festive demand.
The immediate drivers are higher prices for copper, steel, aluminium, plastics and crude derivatives, along with currency volatility and rising freight expenses. Blue Star managing director B Thiagarajan said air-conditioner and deep-freezer prices had already risen 5-8% because commodity costs had increased. He said costs were around 15% higher than during last year’s festive season, although the company estimated that GST benefits available to consumers would reduce the net increase to about 5%.
Copper is particularly important for air-conditioners because it is used in components such as coils and connecting pipes. Haier India president NS Satish said copper had risen from about $8,000-9,000 per metric tonne last year to $14,500, and that an air-conditioner requires approximately 3-4 kg of the metal. Daikin Airconditioning India chairman and managing director Kanwaljeet Jawa said copper prices had increased by almost 25-35%, while a stronger dollar and continued commodity inflation were adding to pressure on manufacturers.
The numbers indicate why air-conditioner prices are rising faster than those of some other appliances. A household buying a new unit is exposed not only to the manufacturer’s margin decision but also to the cost of the metal-intensive supply chain behind the product. When commodity prices move sharply, companies can initially absorb some of the increase, but repeated increases eventually force a choice between lower margins and higher retail prices.
Haier’s planned pricing path illustrates the cumulative nature of this pressure. The company intends to increase room air-conditioner prices by around 5% from October 1. It is also considering further increases after Diwali and again in January if input costs remain high. Satish indicated that the company could implement a cumulative increase of 15% between now and January, spread across three rounds. Haier also plans to raise prices of LED televisions, washing machines and other categories by 2-3%.
Other companies are taking different approaches. Godrej Enterprises Group business head and executive vice-president Kamal Nandi said price increases of 5-7% across categories had become unavoidable after commodity prices rose 8-10% since the previous revision. The timing could vary, with some companies implementing increases from October and others from November. Daikin has already raised prices by 8-10% from September 16, while Super Plastronics plans to increase television prices by around 7% after October and has already raised prices for other appliances by 4-5%.
Televisions may show a more uneven pricing pattern because the impact depends on screen size and supply-chain conditions. Videotex director Arjun Bajaj said smaller television screens could rise by up to 20%, while larger screens could see increases of up to 10%. These figures were presented as possible increases depending on screen size, rather than as a uniform industry-wide revision. The variation reflects differences in components, logistics and the competitive positioning of individual products.
For consumers, the timing is as important as the size of the increase. The period from Onam through Dussehra and Diwali typically accounts for 30-40% of annual sales for appliance manufacturers, according to sector reports cited in the report. Households often defer major purchases to this period because retailers and brands offer discounts, bank promotions and exchange schemes. A price increase just before the peak shopping window can therefore alter both the final purchase price and the perceived value of promotions.
The distribution system may delay the effect. Godrej’s Nandi said dealers and distributors had built up inventory at older prices through pre-buying schemes in August and September. The existing pipeline could last for about one to one-and-a-half months, meaning that much of the Diwali season could still be covered by older-price stock. The implication is that a consumer may continue to see products at earlier prices in October or during parts of the festive period, even though manufacturers have already revised their billing prices.
That buffer is temporary rather than a solution to the underlying cost problem. Once older inventory is sold, replacement stock will reflect the new prices. If manufacturers proceed with additional increases in December and January, retailers will have less ability to protect consumers through existing stock. The transition also creates differences between locations and stores: dealers with larger pre-purchased inventories may retain older prices longer, while others may pass on increases sooner.
The demand picture is not uniformly weak. The report cites an earlier festive-period assessment in which volume sales of refrigerators, air-conditioners and washing machines rose 12-15% year-on-year during the first phase led by Onam. Value sales increased 18-23%, according to manufacturers cited by ET Bureau. Stronger demand was reported across tier-I, tier-II and tier-III markets, with particularly healthy performance in large-screen televisions, four-door refrigerators, large washing machines and air-conditioners.
But the gap between volume and value growth is important. When value sales rise faster than volumes, higher prices and a shift towards more expensive products are contributing to the increase in revenue. That can indicate healthy premium demand, but it does not necessarily mean that every household is able to spend more. Godrej’s Nandi said the premium segment was performing well, while the mass segment continued to face pressure from inflation.
The consumer survey evidence points in the same direction. An InMobi survey of 1,110 Android and iOS users conducted from August 7 to 11, 2026, found that 77% planned to increase their festive shopping budgets, down from 83% the previous year. At the same time, the share planning to spend more than Rs 50,000 rose by two percentage points. Three in five respondents planned to spend more than Rs 10,000, while about 60% expected to buy within a month of the festivals and nearly 29% planned to shop a week or less before celebrations.
This suggests a divided market. Higher-income households may continue to buy premium appliances, absorb moderate price increases or bring forward purchases before later revisions. More price-sensitive households may delay replacement, choose smaller or lower-priced models, rely more heavily on financing and discounts, or shift purchases towards categories with a lower upfront cost. For retailers, this can increase the importance of inventory planning and promotional pricing during a season when consumers already expect savings.
The effect is also likely to differ by appliance. An air-conditioner purchase can be postponed in some households, but rising heat and the need for cooling may make replacement less discretionary in others. A refrigerator or washing machine may be replaced only after a breakdown, making the purchase urgent but budget-sensitive. Televisions are more exposed to promotional cycles and screen-size choices, allowing consumers to trade down or wait for discounts.
The industry’s statements show that manufacturers are attempting to balance two competing risks. Holding prices steady could compress margins as input costs rise, while raising prices could reduce sales volumes. Haier’s Satish said the company would lose money if it avoided price increases, but sales could be slightly affected if prices rose. SPPL director Avneet Singh Marwah similarly warned that higher prices could weigh on festive demand because consumers expect discounts and promotional offers during the season.
This tension is amplified by global and domestic supply-chain conditions. Commodity prices are influenced by international markets, while freight costs and currency movements affect the landed cost of materials and components. Manufacturers therefore have limited control over several variables but must make pricing decisions in a highly competitive retail market. The result is a staggered pattern of increases, with different brands revising prices at different times and by different amounts.
For urban households, the central issue is not simply whether an AC or television becomes 5% or 8% more expensive. It is whether repeated increases are changing the replacement cycle for essential and semi-essential appliances. If households defer purchases for longer, demand could become more concentrated around breakdowns, heat events and major discount periods. If premium demand remains strong while mass-market demand weakens, the market could become more segmented by income and location.
The evidence currently confirms three developments: manufacturers are passing on higher input and logistics costs; dealer inventory may delay the full effect until after Diwali; and demand remains resilient but uneven, with premium products performing better than mass-market segments. What remains uncertain is how much of the planned increase will reach consumers, whether further increases will be implemented in December and January, and whether festive promotions will offset any part of the higher prices. Those developments will determine whether India’s strong festive demand can withstand another round of price pressure.
