HEAT IS ON: ACs may get 3-4% costlier

CHENNAI: Hit by multiple factors such as rising fuel costs and global component shortages, Indian AC manufacturers said on Friday they have no alternative but to pass off the burden to the consumers who will have to pay at least three to four per cent more on ACs next month.

The Indian consumer electronics industry continues to face raw material shortage during the ongoing China-lockdowns and the Russia-Ukraine war.

“The rise in cost of raw materials due to an increase in fuel prices along with component shortage, commodity price inflation, disruption in supply chain, and higher demand for air conditioning solutions for both B2B and B2C spaces is pushing brands to increase prices of the products,” said Gurmeet Singh, CMD, Johnson Controls-Hitachi Air Conditioning India.

“Consumers can expect a 3 to 4 per cent rise in air conditioner prices in June,” he said in a statement.

The electronics sector has already been raising prices by 2-3 per cent every quarter owing to the COVID-19 pandemic.

With supply chain disruptions, fast-moving consumer goods (FMCG) companies have also been forced to increase the prices of daily-use products.

Lockdowns in China have delayed shipments across industries and consumer electronics has taken the maximum hit.