AC prices set to rise 5–15% as input costs surge ahead of summer

New Delhi: Room air-conditioner prices are set to rise by 5–15 per cent as manufacturers pass on higher input costs and supply chain pressures to consumers ahead of the peak summer season.

Major brands including Daikin, Voltas, Blue Star, LG Electronics, Haier and Mitsubishi Heavy Industries have announced price increases between February and April. Industry executives cited rising copper prices, a weakening rupee against the US dollar, higher freight costs and the introduction of new energy-efficiency norms as key reasons for the hikes.

Daikin India Chairman and Managing Director Kanwaljeet Jawa said the company will increase prices by up to 12 per cent from April depending on the model. “The new energy norms have made products more efficient. At the same time, raw material costs such as copper have gone up, the US dollar is strong and freight costs have increased. There is no alternative but to raise prices,” he said.

Blue Star Managing Director B Thiagarajan said the company had already implemented an 8–10 per cent price hike in mid-February. However, he noted that old-priced inventory is still available with dealers, limiting the immediate impact on retail prices.

Market leader Voltas also plans to increase prices by 5–15 per cent during the year. Managing Director Mukundan Menon said rising input costs and new efficiency standards have made the adjustment necessary. Similarly, LG Electronics has raised prices by around 7 per cent for 3-star models and 9–10 per cent for 5-star models, while Haier has implemented hikes of 5–8 per cent.

The price adjustments follow the revised star rating norms introduced by the Bureau of Energy Efficiency from January 1, under which a new 5-star AC is about 10 per cent more energy efficient.

Despite higher prices, companies expect strong demand this summer. The Indian room air-conditioner market, estimated at around 13.5 million units annually, is projected to grow as forecasts point to a hotter season.