Air Conditioner Prices in India to Increase by 4-5% Due to Component Shortages
Consumers in India may have to shell out more for air conditioners as manufacturers plan a 4-5% price hike in response to rising input costs and supply chain disruptions. The increase, expected to take effect soon, comes as the industry struggles with component shortages, particularly compressors, copper, and semiconductors—critical parts of AC production.
Reasons Behind the Price Hike
- Component Shortages: The global supply chain has been facing disruptions, affecting the availability of compressors, refrigerants, and electronic chips.
- Rising Raw Material Costs: Prices of copper and aluminum, essential for manufacturing AC coils and wiring, have surged, pushing up production costs.
- Increased Freight and Logistics Costs: Higher transportation expenses have further added to manufacturers’ financial burden.
- Growing Demand Ahead of Summer: With soaring temperatures expected in the coming months, demand for ACs is rising, giving companies an opportunity to pass on increased costs to consumers.
Impact on Consumers
- The price increase will vary across brands and models but is likely to affect entry-level and mid-range ACs the most.
- Premium and inverter AC models may see a slightly lower price hike due to their higher margins.
- Customers looking to purchase an AC are advised to buy before the price revision to avoid paying extra.
Industry Response
Leading brands like Voltas, Blue Star, Daikin, LG, and Samsung have hinted at upcoming price revisions. Some companies may absorb a portion of the increased costs, but most are expected to pass them on to consumers.
With rising input costs and supply constraints, the Indian air conditioning market is witnessing a price correction of 4-5%. Consumers planning to purchase an AC should consider buying sooner to avoid paying a premium as prices rise ahead of peak summer demand.
