Covid-19 became the biggest reason for the disruption of the supply chain of all types of appliances, but the electronics sector seems to be affected the most. It seems that the effect is going to be in 2021 as well. According to a new report from Indian Express electronic products like LED TV, refrigerator, washing machines, and other appliances are going to witness yet another price hike. The report suggests that there will be an expected price of up to 10 percent from January. The reason behind the price is a rise in the cost of raw materials and components like copper, aluminium, and steel.
Appliances Price Hike in India
The price hike in the ocean and air transports also plays a vital role in increasing the price of the electronics goods. Meanwhile, the price of TV panels has also gone up due to poor supply by global vendors. As per the report, the manufacturers are claiming that the cost of plastic has also witnessed a rise due to a hike in crude oil prices.
According to the report companies like LG, Panasonic and Thomson are going to increase the pricing on their respective products from January. Meanwhile, Sony is still analyzing the situation and yet to say anything about the price hike.
“We expect the increase in commodity prices to impact our product pricing in near future. I anticipate the prices to go up by 6-7 per cent in January itself and may go up to 10-11 per cent towards the end of FY Q1,” Indian Express quoted Panasonic India President & CEO, Manish Sharma.
Meanwhile, LG India is also planning to increase the price by 7 to 8 percent across all the products in the appliances lineup from January 1st, 2021. “From January, we are going to increase the price of 7-to 8 per cent on all products including TV, Washing Machine, refrigerator etc. There is an increase in raw material prices and metals as copper and aluminium. Moreover, crude oil prices have gone up, hence the cost of plastic materials have also gone up substantially,” the report quoted LG Electronics India VP-Home Appliances, Vijay Babu.
The Indian appliances and consumer electronics market is mostly dependent on international imports. China plays a very important role in souring the components for manufacturing and assembling products. It seems Indian needs to take serious action to become independent and increase in-house production of components and other raw materials.
Thanks for reading till the end of this article. For more such informative and exclusive tech content, like our Facebook page