The depreciation of the Indian currency, the rupee, and higher raw materials costs are forcing appliance makers in India to raise prices, according to Zee News Ltd., a business news outlet in India. The article said sources in the industry expect price increases of 4%-10%, and that the amount of imported content - heavily impacted by oil prices and shipping rate increases - has much to do with the price increases. It noted that high-end air-conditioners, washing machines, and refrigerators are usually manufactured completely offshore and imported to India.
A head of appliances for Samsung India said Samsung would up prices for washing machines and refrigerators, but the exact amount of the increases was still unknown.
Haier told the news outlet it will start with price hikes of 3% to 5% on TVs and washers. Haier announced in late May that it will launch a new EcoLife six-door refrigerator line in India.
A Panasonic India managing director said in the article that rupee depreciation and materials costs has caused three price hikes on appliances in one year. It told the news outlet it's prices will go up about 4% for major appliances and about 2% for TVs.
Zee News indicated that India home appliance market players LG, Whirlpool, Panasonic and Godrej have not yet announced how much they will raise process.
Whirlpool India Vice President, Corporate Affairs and Strategy Shantanu Dasgupta said in the article that adjusting appliance prices in India has become less of a periodic event and more of a dynamic process.
But Indian OEMs also noted the potential impact this could have on appliances sales - already down in 2012 due to inflation and interest rate hikes. A cool April in India also hurt air-conditioner sales; there is no indication yet how the May heat wave in much of India may have helped bring back AC sales.
to Daily News