As March begins, temperatures have already started rising in many parts of the country.
This is giving people an early hint of the intense summer ahead.
To beat the heat, many people are planning to buy air conditioners, and AC stores are already seeing increasing demand.
However, there is some bad news for buyers.
Several major companies have announced price hikes for air conditioners.
Brands like Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi are increasing prices due to higher production costs.
The rise in prices is mainly linked to expensive raw materials, a weaker rupee, new energy efficiency rules, and higher freight costs.
Daikin to Increase AC Prices by Up to 12%
Daikin India has announced that it will increase AC prices by up to 12 percent from April.
The exact increase will depend on the model.
According to the company’s Chairman and Managing Director Kanwaljeet Jawa, several factors are pushing costs higher.
He explained that new energy efficiency norms have recently come into effect, which require companies to make their products more efficient.
At the same time, the price of important materials such as copper has increased sharply.
Another reason is the strong US dollar compared to the Indian rupee, which makes imported components more expensive.
Rising global uncertainties and higher freight charges have also added to the cost.
Why AC Prices Are Increasing
There are several reasons behind the expected increase in AC prices this year.
First, the global prices of copper, aluminum, and steel have increased significantly.
These materials are essential for manufacturing air conditioners, so higher raw material costs directly raise production expenses.
Second, the government has introduced new energy efficiency standards through the Bureau of Energy Efficiency.
The updated Indian Seasonal Energy Efficiency Ratio (ISEER) rules require ACs to provide better cooling while using less electricity.
To meet these new standards, companies must upgrade their technology and replace older compressors with more advanced ones.
This increases manufacturing costs.
Third, the strong US dollar is making imported components more expensive for Indian manufacturers.
Finally, global conflicts and disruptions in supply chains have increased logistics and freight costs, forcing companies to pass some of the burden on to customers.
Because of these factors, buying an air conditioner this summer may cost more than last year, even though demand is expected to remain high.