Air-conditioner makers are set to increase prices by 4-5 per cent just at the start of the critical period of summer season. This is in response to the macroeconomic volatility leading to escalation of raw material costs and currency exchange fluctuations amidst the tariff standoff triggered by the US since January.
For cooling products such as air-conditioners and refrigerators, summer months contribute a huge chunk of annual sales. Most players are eyeing strong double-digit value growth this season.
B Thiagarajan, Managing Director, Blue Star Ltd, told businessline, “ Costs of raw materials such as copper, steel, aluminium and refrigerant gases have been on the rise. At the same time, the dollar vs rupee rate exchange rate has been volatile. We are hiking prices of AC products by 4-5 per cent this week.”
He added that US tariff talks which began from the start of the year have led to macroeconomic volatility leading to increased raw material costs. “With the tariffs being announced on Thursday, one will need to seen its impact on US consumption trends. A slowdown in the US consumption could directly impact sectors such as IT, which in turn could have an impact on Indian consumption trends,” Thiagarajan said.
NS Satish, President, Haier Appliances India, told businessline: “By April 15, we will be increasing prices of air-conditioner products by 4-5 per cent due to higher raw material costs and other factors.”
Sources said other players are also in the process of hiking prices of their air-conditioner portfolios in the coming days.
The AC industry has been witnessing strong growth trends so far due to the early onset of summer season. As per some estimates, the industry has seen 30 per cent value growth in March. Rising disposable income and intense summer heat has been fuelling higher demand for air-conditioners even in smaller cities and towns. According to estimates, India’s AC industry is projected to double by FY30.
Published on April 4, 2025
