Before Diwali, common people are going to feel the shock of inflation. Industry officials say that consumer electronics and appliance makers are going to hike prices of air conditioners, LED TVs, washing machines and other products by 5-8 percent from October 1. This is due to rising prices of products made from copper, steel, aluminum and crude oil, currency fluctuations and increase in transportation costs, which are increasing the margins of the companies. The increase comes just ahead of the peak holiday shopping season and will be the third round of price increases from the industry in 2026.

According to the report, the prices of air conditioners are expected to increase by 5-8%, while some manufacturers are also increasing the prices of washing machines, refrigerators and LED TVs by 3-4%. At the same time, some companies are evaluating the impact of increase in input cost (cost of raw materials) before taking a final decision. Companies like Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have already announced or confirmed price hikes of 4-10% across categories. At the same time, Panasonic is assessing market conditions before deciding on raising prices. According to sources, LG and Bosch Home Comfort (which has Hitachi-brand air conditioners) have also hiked AC prices by around 5%.

Why are the prices of electronic items increasing?

Blue Star Managing Director B. Thiagarajan said prices of ACs and deep freezers have already gone up by 5-8 per cent due to increase in raw material cost. He said that because of the war, the prices of all commodities (raw materials) are increasing. Copper, steel and plastic have all become expensive. He said this is the third price hike by the company this year.

Thiagarajan said that the expenditure has increased by about 15 percent compared to last year’s festive season. However, he said that now consumers are getting a GST benefit of around 10 per cent, so the total increase in prices for buyers will be only 5 per cent.

Kamal Nandy, business head and executive vice-president, appliances business, Godrej Enterprises Group, said the last price revision has increased raw material prices by 8-10 per cent, making another price hike “inevitable” across the industry. He said prices will increase by 5-7% across all categories. Timing may vary for different brands. Some may implement it from October and some from November, but it is certain that it will happen.

Nandi said that during the festive season, consumers could get the products at the old prices as dealers and distributors had accumulated stocks before the price hike. He further said, “The stock currently in the pipeline will last for about one to one-and-a-half months. By Diwali, the old price stock will be used up to a large extent. After Diwali, the new price will definitely be implemented.”

Haier plans to raise prices

Haier India president NS Satish said the company is planning to increase the price of room air-conditioners by around 5% from October 1. He told PTI that prices may rise after Diwali and again in January if input costs remain high.

“If we don’t raise prices, we will suffer,” he said. If we increase prices, sales may be affected a little, but we have no other option. Haier is also planning to hike the prices of LED TVs, washing machines and other product categories by 2-3%.

Satish said copper prices have risen sharply last year, which has led to an increase in production costs, especially in the case of air-conditioners, of which copper is an important component.

He said the price of copper, which was $8,000-9,000 per metric tonne last year, has now touched $14,500. An air-conditioner requires about 3-4 kg of copper. Haier expects a total increase of 15 percent between now and January – 5 percent from October 1, another 5 percent around December and another 5 percent in January.

Daikin and TV manufacturing companies also hiked prices

Daikin Air Conditioning India chairman and managing director Kanwaljit Java said the company has already increased prices by 8-10% since September 16. He said that copper prices have increased by around 25-35%. The dollar is strengthening and commodity prices continue to rise. There is a lot of pressure on companies. Java said consumer demand is currently strong, although longer-term cost pressures could weigh on the market.

He said I don’t know what will happen next, but everyone is aware of the truth of the market now. If the situation does not improve, things may suffer in the long run. Super Plastronics Private Limited (SPPL), which manufactures and sells TV brands like Thomson, Kodak and Blaupunkt in India, plans to hike TV prices by around 7% after October. The prices of its other devices have already gone up by 4-5%.

SPPL director Avneet Singh Marwah said higher prices during the festive season could affect demand, especially as consumers generally expect discounts and promotional offers during this season. He said global volatility and rising costs will certainly have some impact on consumer thinking.

Abhishek Verma, head of product marketing and planning (AC category), Panasonic Life Solutions India, said the company is monitoring market conditions before taking any additional decision. He said the industry continues to face cost pressures and we are carefully assessing the situation.

Videotex director Arjun Bajaj said a new price benchmark could be set after Diwali due to higher freight costs and supply chain disruptions. He said that the price of small screen televisions can increase by up to 20 percent, while the prices of large screen televisions can increase by up to 10 percent depending on the screen size.

A test for festival demand

The price hike comes at an important time for the consumer durables industry. According to the report, the festive season from Onam to Dussehra and Diwali accounts for 30-40% of the annual sales of appliance manufacturing companies.

Manufacturers are divided on how much the price increase will affect demand. Some believe the impact will be minimal as distributors have already accumulated stock at old prices through pre-buying schemes in August and September. At the same time, others hope that rising prices will make consumers more cautious.

A survey by InMobi Advertising shows a mixed picture of festival spending in 2026. Its annual report found that 77 percent of Indian consumers are planning to increase their festive shopping budget, compared to 83 percent last year. Also, Rs. The share of consumers planning to spend more than 50,000 increased by 2 percent. The survey included 1,110 men and women using Android and iOS devices between August 7 and 11, 2026.

The report states that in the highest bracket of festival spending, Rs. The number of consumers who reported spending more than 50,000 increased by 2 percent. The report found that three out of five shoppers are planning to spend more than Rs 10,000, while nearly 60 percent expect to shop within a month of the festivities. About 29 percent planned to shop a week or less before the start of the festival.

Expenditure patterns also differed among different consumer groups. InMobi said that 22 percent of Android users spent Rs. 25,000 to Rs. 50,000, compared to 15 percent among iOS users. Rs. Both groups had an equal share in the over 50,000 spent bracket. From smart search searches (89 percent) to virtual product try-ons (81 percent), AI-based brand discovery and decision-making processes are becoming increasingly popular, the report said. Among these, Millennials show 10 percent more enthusiasm for festive looks and AI-based products than Gen Z.

The scope of festive shopping is now moving beyond traditional categories like clothes and shoes. Apparel and footwear still remain the most purchased items (50 percent) during the festive season, while categories such as jewelry (40 percent) and grocery/daily essentials (37 percent) are also seeing strong purchase intent, the report said.

Despite the increase in prices, the demand remains the same

The recent hike in prices comes at a time when the first phase of the season saw tremendous demand during the festive season. According to an ET report, consumer demand in India reached its highest level in five years during the pre-festival periods of Onam, Rakshabandhan and Ganesh Chaturthi. Makers of home appliances, automobiles and other categories reported better sales despite price hikes. Among consumer durables, volume sales of refrigerators, air-conditioners and washing machines grew by 12-15 per cent year-on-year in the first phase during Onam, while value sales grew by 18-23 per cent, media reports quoted manufacturers as saying.

LG Electronics director Sanjay Chitkara said the company saw tremendous sales during Onam and Ganesh Chaturthi, especially in large screen TVs, four-door refrigerators, large washing machines and ACs. According to an ET report, demand remained strong in Tier-1, Tier-2 and Tier-III markets, while online platforms, quick-commerce companies and food delivery services reported growth during the festive period. Kamal Nandi of Godrej Enterprise Group said the market environment has improved in Tier-I, II and III markets, although most segments are facing some pressure due to inflation.

He said in a media report that although the mass segment is facing some challenges due to the inflationary trend, the premium segment is performing well with deep penetration of retail chains and e-commerce. The question for appliance companies is whether the surge in sales during the festive season can withstand another hike in prices. Although the full impact of increased prices due to existing stocks may be postponed until after Diwali, the continued increase in raw material, transportation and other costs may put pressure on producers and consumers even after the upcoming festive season.