Planning to buy AC, TV, fridge pre-Diwali? Here's why prices may shock you

The festive season is usually when consumers wait for the biggest discounts on televisions, air-conditioners and home appliances. This year, however, shoppers could face a different equation: manufacturers are raising prices even as brands and retailers prepare for the crucial Diwali buying season.

From October 1, several consumer durable makers are expected to increase prices, with air-conditioners seeing hikes of around 5-8%. Some manufacturers are also raising prices of televisions, refrigerators and washing machines by around 3-4%, although the exact increase varies by brand and product. This is the third broad round of price revisions reported across the industry in 2026.

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For consumers, the key question is: why are prices rising at a time when companies should be competing aggressively for festive demand?

Copper and other raw materials push up costs

One of the biggest pressures is the sharp rise in raw material costs.

Copper is particularly important for air-conditioners, with an average AC using roughly 3-4 kg of the metal. Business Standard reported that copper prices had risen to about $14,500 per tonne, compared with $8,000-9,000 last year. Manufacturers are also dealing with higher costs of aluminium, steel, plastics and resin.

LG, for instance, has cited significant increases in copper, steel, aluminium and resin costs, along with higher logistics and energy expenses.

The result is a familiar manufacturing dilemma: companies can absorb higher input costs for some time through margins and efficiencies, but prolonged increases eventually put pressure on selling prices.

Higher freight costs add to the pressure

The cost pressure is not limited to factories.

Consumer durable manufacturers have reported that freight costs have more than doubled over the past 30-60 days, while shipment delays have stretched beyond 15 days in some cases. Disruptions affecting shipments from China and Taiwan, combined with continuing problems around Red Sea shipping routes, have increased transit times and logistics costs.

Television manufacturers have also reported delays of up to two to three weeks for some component shipments, adding uncertainty to inventory planning.

This is important because India’s consumer electronics industry remains closely linked to international supply chains.

Continued reliance on imported components

The latest CII–BCG report highlights a structural issue behind the current price pressure.

India’s consumer durables market is projected to grow at 8–10% annually and reach ₹3-3.25 lakh crore by 2030. But bill-of-materials localisation currently ranges from roughly 25% to 70% across major categories. Televisions and room air-conditioners are at the lower end, while refrigerators and washing machines have relatively higher localisation.

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Critical components such as TV display panels, AC compressors, refrigerator insulation and washing-machine motors continue to depend significantly on global supply chains.

In other words, an appliance can be assembled in India and still be vulnerable to a global commodity, freight or component shock.

Existing stock could cushion price impact

Not necessarily. Retailers and distributors stocked products ahead of the festive season, with some inventory purchased at older prices. Industry executives expect this existing stock to help cushion the initial impact of the price increases.

Godrej Appliances, for example, has indicated that its distribution pipeline could cover roughly one to one-and-a-half months. Retailers have also said stocks are adequate for the festive period.

That means consumers could still find products at their old prices, along with exchange offers, bank discounts and other festive promotions.

But once that inventory is exhausted, higher procurement costs are likely to become more visible in retail prices.

What happens after Diwali matters more

The immediate price hike is only one part of the story.

The CII–BCG report estimates that the sector’s growth could create an additional ₹40,000-50,000 crore opportunity for domestic value addition across materials and component manufacturing over the next five years. However, it also warns that at the current pace of localisation, a significant share of the opportunity could continue to be met through imports.

For consumers, that has a direct implication.

The stronger India’s component ecosystem becomes, the less exposed manufacturers may be to certain global supply disruptions. Building domestic capabilities in compressors, displays, motors and other critical components is therefore not just an industrial-policy objective; it can also become a question of cost stability for consumers.

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For now, shoppers planning a Diwali purchase should compare the final effective price, not just the MRP. Existing inventory means two retailers selling the same model may offer materially different deals.

The broader trend, however, is clear: India's consumer durables market is expanding rapidly, but the supply chain supporting that growth is still evolving.

And until more of that value chain moves closer to home, global commodity prices, freight disruptions and component shortages can continue to find their way into the price of the AC, TV or refrigerator sitting in an Indian living room.