LED TVs, refrigerators, washing machines and more such appliances are expected to get a 10 percent hike in prices from January next year. This is because of a rise in costs of key raw materials including copper, aluminium and steel, and a rise in ocean and air freight charges. Apart from this, prices for TV panels have also gone up by over two-folds due to short supply, and the prices of plastic and crude oil have also risen. Also Read - Amazon Mega Music Fest sale: Best deals on TWS earphones, headphones, soundbars and more
According to a report by PTI, multiple manufacturers including LG, Panasonic and Thomson are going to increase prices from January. However, “Sony is still reviewing the situation and is yet to take a call on this.” Also Read - Sony PlayStation Showcase 2021: God of War Ragnarok, Marvel's Spider-Man 2, 16 other games revealed
Panasonic India anticipates that the prices of all of its consumer electronics being sold in India will go up by around 7 percent in January, and by up to 11 percent towards the end of Q1 2021. LG Electronics India has also stated that the prices of its products will go up by 8 percent from January. Also Read - LG TV 2021 lineup launched in India: Check details here
According to the report, Sony India, for now, will “wait and watch” before taking the call. However, it is also thinking of increasing prices.
“The industry is facing a severe challenge owing to the shortage and consequent increase of almost 150 percent in the TV Opencell prices, along with an increase in almost all other raw material such as plastic items etc. Also, the other factor leading to a sharp rise in the prices is the three fold increase in Import Freight charges compared to October 2020. Prices can be expected to go up by 20-30 percent,” Arjun Bajaj, Director Videotex international, told BGR India.
Apart from the rise in the prices at the supply chain, there is excess demand for the products due to the current work from home situation and due to factories not running at full capacity. These are also leading to an increase in prices.
Super Plastronics believes that there is a scarcity of TV Opencell in the market, due to which the prices have almost gone up by 20 percent. Due to this Thomson and Kodak will increase their television prices by 20 percent in January.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), if the brands increase the prices of products like TVs washing machines and more, they will get to see an overall decline in the next quarter. But, Godrej Appliances believes that this will be offset by some of the pent up demand for the goods surfacing now.