The prices of consumer appliances like Air Conditioners, washing machines, microwave ovens, refrigerators are going to increase during June-July. It is because of the increases in input costs like steal, copper and other raw materials. The depreciation in rupee value has also increased the cost of imported raw materials. Voltas has already increased the prices by 3%. Companies like Samsung and LG are likely to increase by around 5%.
By and large, these appliances are going to cost more by 2% to 5% which means an increase in the range of Rs.500 to Rs.1500/-, particularly in premium models. But, companies are likely to offset the increase through promotional offers, so that the consumers do not feel the pinch. Marketers are also of the opinion that this will not affect the demand as 70% of purchases are on EMIs and finance schemes.
Source: The Economic Times, May, 30th.