Appliance makers expect double-digit growth in festivals despite price hike

The consumer appliances industry is optimistic about achieving double-digit growth during the festive season, despite a 5-8% increase in prices of air-conditioners and other appliances. This positive outlook follows strong sales during Onam in the South and is expected to continue through Navratri and Diwali.

The recent price hike marks the third round of revisions this year, driven by rising costs of copper, aluminium, steel, and crude derivatives, along with increased freight expenses and currency fluctuations. Manufacturers believe that premiumisation, replacement demand, and easy financing will support sales growth, even as higher prices may pressure volumes.

Consumers are increasingly opting for larger-capacity and feature-rich appliances, including energy-efficient and smart connected products. Industry executives noted that this trend is expected to bolster value growth despite the price increases. Some companies anticipate minimal impact from the price hikes, as dealers and distributors have stocked inventory purchased at older prices through pre-buying schemes in August and September.