LG, Daikin, Voltas and Godrej raise appliance prices as input costs bite
LG plans a 5–7% AC price increase from 1 October 2026, while Voltas, Daikin and Godrej are also raising prices amid higher copper, steel, aluminium, logistics and energy costs. Cumulative hikes in some categories have reached 16–18%, creating a potential drag on festive demand.
The development
LG will raise AC prices by 5-7% from 1 October 2026 as Voltas, Daikin and Godrej also lift appliance prices amid higher commodity, logistics and energy costs. The third increase this year takes cumulative hikes in some categories to 16-18%, threatening festive demand.
The numbers
- up to 10%
- 8-10%
- Rs 3-3.25 lakh crore
- 2030
- third
- 16-18%
- 34%
- 17%
- 24%
- 16%
- 5-7%
- 1 October 2026
- 6-10%
- 4-6%
- Rs 1,000-10,000
- 43-inch to 75-inch
- 25-30%
- 2-3%
- three months
- 10%
- 5%
- 13%
- 18%
- 25% to 70%
- Rs 40,000-50,000 crore
- 25-70%
- 30-80%
- 31 proposals
- Rs 7,877 crore
- 106
- Rs 69,000 crore
- five companies
- fourth round
- Rs 863 crore
- Rs 8,337 crore
- 1,799
- 2027-28
- Rs 6,238 crore
- 20-25%
- 75-80%
- 95%
- below 1%
- 2010
- 22%
- 2025
- second-largest
- less than 1%
- 1-4%
Why it matters to operators and investors
Rising input-cost pressure strengthens the strategic case for local sourcing, component partnerships and supply-chain assets that reduce exposure to metals, logistics and energy volatility.
What to watch next
- October-to-festive season AC, refrigerator and washing-machine sell-through versus prior year.
- Magnitude of bank-funded EMI, cashback, exchange and dealer-margin programs after the price increases.
- Copper, aluminium, steel, crude oil/freight and INR exchange-rate movements.
- Channel inventory levels, especially at multi-brand electronics retailers and distributors.
- Premium-model mix, average selling prices and commentary on entry-level demand from LG, Voltas, Daikin, Godrej and competing brands.
- Weather conditions and late-season heat waves, which could partially offset affordability-driven demand weakness.
- Shift marketing toward EMI affordability, exchange schemes and bundled installation/service offers rather than broad headline discounts.
- Prioritize premium inverter, energy-efficient and larger-capacity SKUs where pricing power and margin recovery are strongest.
- Reduce promotional exposure on entry-level models while using selective dealer incentives to protect market share in price-sensitive regions.
- Accelerate local sourcing, component redesign and inventory planning to reduce exposure to metals, logistics and currency-linked cost volatility.
- Retailers may increase stocking of lower-priced regional brands and older-model inventory if branded demand slows materially.
The counter-case
The price hikes may protect margins rather than materially hurt demand: affluent urban buyers could absorb 5–7% increases, financing and festive promotions can mask sticker-price inflation, and a hot summer or replacement-cycle demand could outweigh the impact. Moreover, repeated industry-wide hikes may reduce relative competitive disadvantage, while lower commodity costs later could restore margins without requiring further increases.