Consumer Durables Set for Another Price Hike: ACs, TVs and Refrigerators to Get Costlier Ahead of Festive Season

India’s consumer-durables industry is heading into the festive season with another round of price increases, as manufacturers of air-conditioners, televisions, refrigerators and washing machines look to offset rising input, logistics and energy costs.

Several manufacturers are expected to revise prices from October 1, 2026, with air-conditioners likely to see the sharpest increase. Industry reports indicate that AC prices could rise by around 5–8%, while televisions, refrigerators and washing machines could see increases of around 3–4% in several cases. Some companies, however, have already implemented larger increases, meaning the actual impact will vary by brand and model. 

The October revision is being described by industry participants as the third round of price increases in 2026, with cumulative increases for some categories and brands reportedly reaching 16–18% since January.

The latest price increases are driven primarily by commodity prices, logistics costs, energy expenses, and currency movements.

• Copper is a major concern: Copper is especially important for the air-conditioner industry because it is used in tubes, coils, and other cooling-system components. According to industry reporting, copper prices have risen substantially, with Haier indicating that prices had moved from around $8,000–9,000 per tonne last year to around $14,500 per tonne. An AC typically uses roughly 3–4 kg of copper, making the category particularly sensitive to copper prices. 

• Steel and aluminium costs have also increased: Steel and aluminium are used across appliance manufacturing, including cabinets, structural components, heat exchangers and other parts. LG has reported that, during 2026, its input costs increased significantly, with copper up 34%, steel 24%, aluminium 16% and resin 17%, according to Economic Times. 

• Freight and logistics costs: International shipping and logistics expenses have also increased. This matters because consumer-durable manufacturers continue to depend on global supply chains for several components and raw materials. Higher freight costs eventually feed into the landed cost of imported components and therefore into the cost of the finished appliance. 

• Rupee-dollar movement: Currency volatility is another factor. A weaker rupee makes imported components and commodities more expensive in rupee terms, putting additional pressure on manufacturers that have significant imported content.

Not necessarily. One important factor is existing dealer inventory. Manufacturers and distributors typically build inventory ahead of the festive season. Products sitting with retailers may have been purchased at the old prices. Once this inventory is exhausted, the revised prices are likely to become more visible.

The latest price increase comes just before Navratri, Dussehra, and Diwali, traditionally an important sales period for consumer durables.

Industry estimates cited in recent reports suggest that the festive period can account for roughly 30–40% of annual appliance sales. 

This creates a difficult balancing act for manufacturers.

Therefore, manufacturers need to balance margin protection against volume growth.

The current episode also highlights the consumer-durables industry's dependence on global supply chains.

According to a recent BCG-CII assessment, localisation across consumer-durable categories currently varies considerably, roughly between 25% and 70%. TVs and room ACs are among the categories at the lower end, while refrigerators and washing machines have relatively higher localisation. 

This means that even when the final appliance is manufactured in India, some important components may still be imported.

The implication is significant:

Global commodity shock → imported component cost rises → Indian manufacturing cost rises → consumer price rises.

The government is attempting to develop a stronger domestic component ecosystem through programmes such as the Electronics Component Manufacturing Scheme (ECMS) and the Production Linked Incentive scheme for White Goods.

The objective is to move beyond simply assembling products in India and increase domestic manufacturing of critical components.

The White Goods PLI, for example, specifically targets components used in air-conditioners and LED lighting, while recent ECMS approvals cover components such as display modules, connectors, copper-clad laminate and other electronics inputs. 

Greater localisation could eventually reduce India's vulnerability to freight costs, currency movements and imported-component disruptions, although it would not eliminate exposure to global commodity prices.