AC prices to rise 5% to 15% as expensive copper, weak rupee and new energy norms push costs

Room air conditioner prices will rise 5-15% ahead of summer due to increased raw material costs and new energy norms.

As the mercury starts rising, leading room airconditioner makers are increasing prices in the range of 5-15% to offset sustained increases in raw material costs and supply chain expenses.

The hikes, being rolled out between February and April, come just ahead of the peak summer season when demand typically surges.

Leading players, including Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi Heavy Industries, have announced increases across models, passing on higher input costs for key raw materials such as copper, a weaker rupee, new energy-efficiency norms and an increase in freight costs.

Industry executives said while adjustments are unavoidable, they expect strong sales momentum this year, aided by forecasts of a hotter summer and improved energy savings from new star-rated models.

Daikin India is going to increase prices by up to 12% from April, and the hike in prices would depend on model to model, its Chairman & Managing Director Kanwaljeet Jawa told PTI.

"The new energy norms have come, which have made products more efficient. Also, prices of materials such as copper have gone up; the U.S. dollar is at an all-time high (in comparison to the Indian rupee). Besides, there are a lot of uncertainties due to global turmoil, and freight costs have also gone up, making imports (of components) costlier. So there is no alternative," he said.