As heat waves scorched Indian cities during summers that are getting worse, sales of refrigerators and air conditioners surged, prompting consumers to look for discounts online. But as global supply chains are hit by a recession, the headwinds will jostle Indian markets, even though the country has managed to do better than developed economies.
Electronic appliances are expected to cost more, as uncertainty surrounding monsoon may create additional pressure.
Costly components and uncertainty guiding prices
According to a New18 report, a 30 per cent uptick was registered in the price of air conditioners and refrigerators among others since 2020.
Despite some post-pandemic relaxation, the prices remain unpredictable due to volatility in the global economy.
Components such as panels for LED TVs are also 35 per cent more expensive, which leaves Indian brands with no option but to raise the prices of the end product by as much as 7 per cent.
Sellers cautious about hurting demand
But air conditioner and refrigerator prices didn't burn consumers during the summer, as input costs and freight rates cooled down, and high demand ensured an uptick in sales.
AC and fridge sales were down in 2021, but 2022 saw a recovery as the number of units sold surpassed pre-pandemic levels.
In order to ensure that the recovery isn't disrupted, Indian manufacturers avoided price hikes that could affect demand.
