Business · India Bureau
India's appliance makers bullish on double-digit growth despite price hikes
Indian manufacturers of air-conditioners and consumer appliances are forecasting strong double-digit sales growth during the festive season despite raising prices by 5-8 per cent. The optimism is underpinned by rising consumer demand for premium and energy-efficient products, replacement purchases, and widespread availability of easy financing schemes.
LSN India ·
Appliance makers have implemented their third round of price increases this year, driven by elevated costs of raw materials including copper, aluminium and steel, as well as crude derivatives, surging freight charges and currency headwinds. Despite the hikes, industry confidence remains robust, buoyed by early strong performance during Onam celebrations in southern India and expectations of sustained momentum through Navratri and Diwali festivities.
A significant trend underpinning the industry's growth outlook is premiumisation, with consumers increasingly gravitating towards larger-capacity appliances equipped with advanced features. Smart connected devices and energy-efficient models are gaining particular traction, supporting overall value growth in the sector beyond unit sales alone.
Manufacturers point to improving consumer sentiment and the ready availability of consumer financing options as critical enablers of growth during the peak festive shopping period. The convergence of replacement demand from older appliances, the proliferation of attractive financing schemes, and rising disposable incomes across Indian households is expected to sustain the sector's upward trajectory despite the recent price corrections.