Pune: This may be the right time for consumers interested in purchasing white goods to make their purchases right away, as they may have to shell out more money to make these purchases a few days later. All companies manufacturing consumer durables are set to increase the prices of home appliances in the coming days, owing to the increased cost of production.
Speaking to Sakal Times, President of Haier India, Eric Braganza, stated that despite local production of electronics, the prices of consumer durables are set to see an upward revision. “Though we manufacture refrigerators locally and will start production of air conditioners, LED TVs and water heaters in India too, the costs of electronics will not come down,” he said.
According to him, the cost of all raw materials used for production including steel and plastic have risen in the period after introduction of GST. “While manufacturing locally has its benefits in terms of cost, the production costs have gone up as the raw materials are more expensive. Due to this coupled with the absorption of the GST aftershocks, all companies are set to start increasing the prices of their products soon,” he explained.
He said that the consumer durable companies had felt the need of an upward revision before Diwali. “Most companies wanted to make the price hike before Diwali but refrained from doing so due to the festive season. GST also had its impact on the prices of white goods and so companies decided to wait till the end of the festive season before announcing the price hike,” Braganza said.
On The Rise
- Starting with refrigerators and air conditioners, the prices of all consumer durables are set to rise in the near future.
- Following the introduction of the Goods and Services Tax (GST), the prices of several raw materials used for manufacturing of white goods has gone up, affecting the cost of production.
- The industry, which already took a hit under the new tax regime, is looking at the price hike to improve the situation.
