Prices of household appliances and consumer electronics, such as televisions, washing machines, and refrigerators, are projected to rise 3 to 5% from the end of May or the first week of June, as manufacturers pass on the impact of higher input prices to consumers…
Furthermore, the sinking Indian rupee against the US dollar has added to manufacturers’ troubles, as imported components have become more expensive, despite the industry’s reliance on imports for crucial components.
To add to the difficulties, there has been a shortage of parts caused by the stacking up of containers at Shanghai port as a result of the city’s severe lockdown following the increase in Covid-19 cases.
This has put a strain on manufacturers’ inventories, and numerous top-line products with low local value addition and a high reliance on imports are no longer available.
The collapse of the Indian rupee versus the dollar, according to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), is causing significant challenges for the industry.
“Raw material prices are rising, and the US dollar is strengthening as the Indian rupee falls in value. All manufacturers would now be focused on the bottom line (profit/income). From June onwards, we should expect a 3 to 5% price hike “. PTI spoke with CEAMA President Eric Braganza.
The price increase will affect most product categories, including washing machines, air conditioners, and refrigerators, as well as other appliances.
Some air conditioner manufacturers raised prices in May, but others are likely to do so by the end of the month or in June.
“The industry will pay for imported goods as they arrive,” Braganza said, adding that “if the dollar remains at Rs 77.40 versus the Indian rupee, manufacturers would have to make price adjustments.”
However, he noted that if the US dollar returns to its prior level of 75 in the next two weeks, they will not need to make any pricing modifications.
On Thursday, the rupee lost 15 paise to end at 77.40 against the US dollar.
Panasonic India & South Asia CEO Manish Sharma noted that input costs are continuing to rise, but the business is attempting to reduce the impact on consumers.
“The last price increase we made was in January 2022. Consumers may expect a 4-5 percent price increase across product categories, including refrigerators, washing machines, microwave ovens, and other appliances, due to rising commodity prices “he said.
Similarly, Super Plastronics Pvt Ltd (SPPL), which holds branding licences for multinational companies like as Blaupunkt, Thomson, Kodak, and White-Westinghouse, plans to raise the prices of its televisions.
There have been numerous problems in 2022, beginning with the war, followed by the Covid crisis and Chinese lockdown, and now the Indian rupee dropping to an all-time low against the US dollar.
“All of this has pushed the brands to struggle in sourcing, production, and supply,” said SPPL CEO Avneet Singh Marwah, adding, “As a result, raw material and commodity prices have increased by 20%, and we will increase product prices by 3-5 percent for all brands including Thomson in June and July.”
The Shanghai shutdown, according to Haier Appliances India president Satish NS, has interrupted component supply and the impact will be felt starting in June.
“AC and flat panel TVs would be the most affected. Refrigerators would suffer less damage “he said. He did, however, rule out any significant pricing changes as a result of this.