Top News

As the summer season approaches, consumers looking to purchase air conditioners (AC) are facing significant price increases. Major manufacturers such as Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi Heavy Industries have announced price hikes ranging from 5% to 15%. These increases will take effect between February and April, making it considerably more expensive to buy an AC before the heat sets in. The primary factors contributing to this surge include soaring raw material costs for copper and aluminum, a weakening currency, rising freight charges, and new energy efficiency regulations.

Details of the Price Increases

• Daikin India: Plans to raise prices by up to 12% starting in April, varying by model.


• Blue Star: Already implemented an 8-10% increase in mid-February.


• Voltas (market leader): Announcing a calibrated increase of 5-15% throughout the year.


• LG Electronics: Price hikes of 7% for 3-star models and 9-10% for 5-star models.


• Other brands like Haier and Mitsubishi are also following suit with similar increases.

For a standard AC priced at ₹40,000, consumers may now pay an additional ₹2,000 to ₹6,000.

Key Reasons Behind the Increases

Surge in Copper Prices

• Last year, copper prices hovered around $8,500 per ton, but have now escalated to $12,000-13,000 per ton, marking an increase of approximately 18-40%.


• Copper is extensively used in AC components such as condensers, compressors, and piping, directly impacting production costs.

Increased Costs of Aluminum and Other Materials

• Prices for aluminum, steel, and other components have also risen, contributing to an overall cost increase of 8-10%.

Weakening Currency

• The Indian rupee has weakened significantly against the dollar, raising import costs for many components.

New Energy Efficiency Regulations

• Under the new BEE star rating regulations, manufacturers are required to produce more energy-efficient ACs, leading to higher production costs.

Freight and Supply Chain Costs

• Global turmoil, increased shipping charges, and logistics costs have also contributed to the overall price hike.

Industry Insights

• Voltas MD Mukundan Menon: "Input costs are consistently rising. Copper has become expensive, the rupee is weak, and new energy regulations have emerged. We need to raise prices to provide quality and energy-efficient products."


• Daikin CMD Kanwaljeet Jawa: "We will implement a model-wise increase of up to 12% starting in April. There are no alternatives."


• Blue Star MD B. Thiagarajan: "We have already increased prices by 8-10% in February."

Expert Opinions

• Industry experts predict that AC sales could rise by 15-20% by 2026, as hotter weather is anticipated and consumers are increasingly favoring 5-star inverter ACs.


• However, the price hikes may impact the middle class. Experts advise consumers to consider purchasing an AC now, as the increases will be fully implemented by April.

Tips for Consumers

• Take advantage of current discounts or offers.


• Opt for 5-star rated ACs, which will save on electricity bills in the long run.


• Explore EMI or financing options, but ensure to check the total cost.

This price increase comes just before the peak demand season for ACs. While companies describe the hikes as "modest and calibrated," they are undoubtedly a burden for consumers. Stay tuned for further updates.