- TV panel’s price has also augmented by over two-folds due to decreased supply of raw materials by worldwide vendors
- LG is going to soar the price of all its product range in the consumer appliance category by a minimum of 7 to 8 percent from January 1
The prices of several daily-use appliances, including washing machines, refrigerators, and LED TVs, will apparently see a hike by 10 percent from January 2021 on account of the increase in costs of key input materials such as steel, copper, and aluminium as well as the rise in ocean and air freights charges due to the pandemic.
In addition, the price of TV panels has also augmented by over two-folds due to the decreased supply of raw materials by worldwide vendors and disturbance of supply chain. According to the manufacturers, plastic prices have also soared high because of high crude oil prices.
Thomson, LG, and Panasonic have stated that the situation is unavoidable and they are going to escalate the prices of the products from January 2021. However, the Japanese global giant Sony is still examining the situation and is yet to take a decision on this matter.
Manish Sharma, president and CEO, Panasonic India, said: “We expect the increase in commodity prices to impact our product pricing in near future. I anticipate the prices to go up by 6 to7 percent in January itself and may go up to 10 to 11 percent towards the end of FY Q1.”
LG, the Korean global electronics manufacturer, is going to soar the price of a minimum of 7 to 8 percent on all its product range in the consumer appliance category from January 1 itself.
LG Electronics India vice-president (home appliances) Vijay Babu said, “From January, we are going to increase the price of all products including TV, washing machine, refrigerator, etc., 7 to 8 percent. There is an increase in raw material prices and metals as copper and aluminium. Moreover, crude oil prices have gone up, hence the cost of plastic materials has also gone up substantially.”
Meanwhile, the Consumer Electronics and Appliances Manufacturers Association (CEAMA) has warned that the increased price of the goods might disturb the overall demand in the market.
Kamal Nandi, president of CEAMA, said: “A rise in the commodity cost by 20 to 25 percent increase in the ocean and air freights to the extent of 5 to 6 times due to shortage of containers and the lag in the mining activity due to the pandemic is putting upward pressure on the overall input cost for appliances. As a result, brands are most likely to increase prices to the extent of 8 to 10 percent in near future, which may hamper the overall demand in the next quarter.”