If you are planning to get a new refrigerator or air-conditioners or washing machines you should hurry up. Soon, large consumer durable products prices could go up by 3-5 percent if recent reports are to be believed. Manufacturers are citing rising input costs as the reason behind this expected price hike.
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Leading national daily the Economic Times has spoken to three powerful industry executives and all of them pointed out a rise of 30-50% in input cost since last January. According to them, the prices of Steel has gone up by 40 while copper rates have shot up by 50 percent. Apart from this, necessary chemical MDI for refrigerator form is facing supply constraints globally so it twice expensive now.
“These three account for almost 70% of input cost and hence there is a net impact of 5-6% on prices. However, we will absorb some and pass on the rest, that too probably in phases, since market sentiments are not very buoyant,” said Kamal Nandi, Godrej Appliances business head. As per him, Refrigerator could go up as soon by the end of this month.
Washing machines too are in the queue to get a price hike and will start costing more by the end of this year. With new year air-conditioner prices will also go up. Reports suggest that Samsung and LG two of the biggest names in Indian consumer durable space have decided to increases prices of their products in line with the rest of the industry. Having said that, both companies are yet to make an official announcement.
If claims in the report are to be believed, prices of five and four stars rated ACs will shoot up the most. One reason behind it could be change in the Indian Seasonal Energy Efficiency Ratio (ISEER) energy efficiency ratings. The new ratings will become effective from 1 January 2017.