Indian appliance manufacturers are implementing significant price increases across multiple product categories as input cost pressures mount. Air conditioner prices are expected to rise by 5% to 8%, while washing machines, refrigerators and LED TVs are seeing increases of around 3% to 4%. According to latest reports, several companies including Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have announced or confirmed price increases across product categories. Panasonic said it was still evaluating market conditions before deciding on any revision. This marks the third round of price hikes in 2026 as manufacturers pass on rising input costs to consumers ahead of the festive season.
Blue Star Ltd is facing a severe cost escalation crisis that may require additional price increases beyond the current 8% hike. Managing Director B Thiagarajan revealed that the company's latest price increase will not be sufficient to fully offset rising costs, stating that Blue Star should have raised prices by around 18-19% over the past year, leaving a gap even after the latest hike. The company had originally discussed a 13% price increase during the summer season, but only around 5% could be passed on, creating an 8% gap that remains after the latest 8% increase. Copper prices have risen 41% to $14,450 from $10,233 a year ago, while aluminium prices have increased around 21% to $3,250 per metric tonne from $2,672. Steel prices have risen to ₹64,000 from ₹49,200, and high-density polyethylene (HDP) used in injection-moulded plastic has increased to ₹134 per kg from ₹91.
Small appliance manufacturers are adopting a contrasting approach to price management compared to their large appliance counterparts. Kenstar, Intex Technologies and INALSA are deferring further price increases after already raising prices twice this year, choosing to absorb part of the pressure from rising input costs to protect sales volumes. Intex Technologies director Keshav Bansal noted that the company will be absorbing most of the cost increase but the minimum hike could be around 3-4%. This strategy differs significantly from large appliance makers like LG Electronics India, Haier, and Super Plastronics Pvt Ltd (SPPL), which are moving ahead with price increases from October 1 to offset sustained increases in commodity, plastic and freight costs.
The timing of these decisions reflects the critical importance of the festive season for appliance sales. Kenstar's CEO Sunil Jain explained the company's strategy: "We have taken a very calculative call that we will increase the prices from 1st of November, not 1st of October." Intex Technologies' director Keshav Bansal noted that manufacturers have stocked up on inventory and are looking to absorb higher costs to avoid disrupting festive demand, with October being a peak sales month for several brands. The industry-wide price increases are designed to protect margins while maintaining competitive positioning during the crucial festive period. Haier spokesperson confirmed the company's approach: "With input costs continuing to remain elevated, we are undertaking a price revision across select appliance categories from October 1."
Despite cost pressures, appliance manufacturers remain optimistic about festive season performance. Kenstar expects around 70% growth in its overall small-appliance business during the festive season, with air fryers driving significant growth. The company is seeing nearly 600% growth in air fryers during the festive period, while INALSA is targeting around 20% festive-season growth. Blue Star's Thiagarajan noted that the 10% GST reduction has provided some relief, with the effective burden on consumers limited to around 5% if overall prices rise 13% to 15% after the latest hike. However, the latest price increases may impact consumer purchasing power during this critical sales period. Epack Durables' Singhania warned that the 7-8% hike announced currently is not enough to make up for the rising costs and players might have to take another round of price hikes below the summer season next year.
