Consumer durable manufacturers are implementing 5-8% price increases on air-conditioners and appliances ahead of the festive season, marking the third round of revisions this year. According to The Times of India, rising costs of copper, aluminium, steel and crude derivatives, along with higher freight expenses and currency fluctuations, have prompted manufacturers to raise prices. However, some industry executives expect the impact to be limited as dealers and distributors had already stocked products at older prices through pre-buying schemes in August and September. As reported by PTI, Haier Appliances India CEO N S Satish confirmed the company's optimism, stating "Definitely. It will." Haier has raised prices by around 5% on room air-conditioners from October 1 and 2-3% in other product categories such as LED TV and washing machine. Room air-conditioners have seen some of the sharper increases, while prices of televisions, washing machines and other appliances have risen at a more moderate pace. According to CNBC TV18, HDFC Securities Research Analyst Keshav Lahoti notes that while most of the cost inflation has been passed on, some categories still have more costs to absorb, with the industry imposing an additional 5% price hike from October.
Despite price increases, consumer durable manufacturers are expecting double-digit sales growth during the festive season. Haier Appliances India CEO N S Satish projects 30-35% growth for the company, while the industry overall should achieve 10-15% growth. As reported by PTI, Satish explained that "For us, it will be 30-35 per cent growth. Industry should be about 10-15 per cent," adding that premiumisation and easy availability of finance would support demand despite price increases. The festive season has started on a positive note, with manufacturers reporting healthy sales during Onam in southern India, and companies expect demand to strengthen across other markets as consumers replace ageing appliances and increasingly opt for larger-capacity, energy-efficient and feature-rich products, including smart connected appliances. According to CNBC TV18, Lahoti expects healthy top-line growth for Q2FY27, supported by price hikes, with this trend continuing in coming quarters. Importantly, he does not see major inventory build-up at the retail level, with demand remaining healthy in Q2 and channel inventory largely at normal levels.
Consumers are increasingly opting for larger-capacity and feature-rich appliances, including energy-efficient and smart-connected products. According to industry executives, this shift towards premium products is expected to support value growth even as higher prices put some pressure on volumes. LG Electronics India Co-Chief Sales & Marketing Officer Sanjay Chitkara noted that consumers are exploring categories such as dishwashers, microwave ovens, audio products and water purifiers beyond traditional refrigerators, washing machines, televisions and air-conditioners. As reported by PTI, Chitkara said consumers are upgrading not only refrigerators, washing machines, televisions and air-conditioners, but are also exploring new categories. LG's Essential Series is seeing traction among first-time consumers in Tier-2 and Tier-3 markets, while improved affordability following GST rationalisation and special festive EMI schemes are expected to support demand. According to CNBC TV18, kitchen appliances are seeing strong demand, while cooling products have performed well after an extended summer, with induction cooktop demand cooling from a high base but remaining healthy. HDFC Securities expects Crompton's performance in new categories such as solar, water purifiers and other segments to determine the scope for further upside.
Sony India Managing Director Sunil Nayyar expects 15-20% overall value growth during the festive season, with more than 30% growth in the imaging business. The company anticipates strong growth in audio products and television sales driven by premium BRAVIA models and larger screen sizes. LG Electronics remains "very optimistic" about the upcoming festive season beginning with Navratri in October, with pre-festive inquiries during the Shradh period being encouraging. The company expects improved affordability following GST rationalisation and special festive EMI schemes to support demand. Godrej Appliances has raised prices of room air-conditioners from October 1 and believes that consumers would still have an opportunity to buy products at existing prices during the festive season as inventory procured before the hikes remains available in the distribution channel. According to CNBC TV18, HDFC Securities maintains a positive stance on Orient Electric, expecting the company to continue gaining market share and building on improvements seen over the past two years under current leadership. The stock is trading at around 20 times earnings on FY28 estimates, which Lahoti considers reasonable and at a significant discount to its long-term average. The brokerage is also positive on Crompton Greaves Consumer Electricals, though execution will be the key driver, while maintaining a negative stance on LG Electronics India at current valuations, expecting revenue growth of around 15% this quarter driven more by price hikes than underlying volume growth.
The festive period from Onam through Dussehra and Diwali typically accounts for 30-40% of annual sales for appliance manufacturers, according to sector reports. Godrej Enterprises Group Appliances Division head Kamal Nandi noted that despite inflationary environment, sales momentum was witnessed during Onam, with optimism about festive demand across other regions. The Indian consumer durables market is expected to grow 8-10% annually to reach ₹3-3.25 lakh crore by 2030, according to a joint report by Boston Consulting Group and Confederation of Indian Industry. As reported by PTI, the optimism among manufacturers comes despite recent price hikes, with companies expecting premiumisation and replacement demand to support sales and offset some impact of higher prices on volumes. According to CNBC TV18, companies entered the festive season on a strong note after healthy sales during Onam in southern markets, with demand expected to remain firm through Navratri and Diwali, supported by improving consumer sentiment and wider access to financing.
