After Diwali, prices of electric items like ACs, TVs and fridges are likely to go up. So if you are thinking of buying these items, buy them now. This is because the prices of consumer durables products may go up. Prices of Steel, Copper, Aluminum have gone up in the last few days. This has put pressure on consumer durables companies to raise the prices of their products. Rising diesel prices have also made freight more expensive. So these companies have no choice but to raise prices.
The shortage of semiconductor chip is also plaguing these companies. Consumer durables companies did not raise prices during the festive season on the back of higher sales. This is affecting their profits. That is why after Diwali, these companies are said to be able to increase the prices of their products by seven to ten per cent. Over the last few days, the price of metals has risen by 20 to 25 per cent.
Most companies import components from China, and freight charges from China have increased fivefold. Companies have not increased rates in comparison to that. But consumer goods companies are preparing to pass on the increased price to consumers. That is why the process of price hike will start in phases after Diwali. Dussehra has seen a surge in sales of consumer durables companies, with e-commerce companies playing a major role.
AC, TV, fridge were in good demand during Navratri. Now the companies expect to see good sales even on the eve of Dhantrayodashi and Diwali. The big sale launched by e-commerce companies like Amazon, Flipkart in the first week of October is still going on. If consumer durables companies decide to hike prices after Diwali, it will have an impact on the pockets of consumers. While petrol, diesel and other items have become more expensive, now AC TVs, fridges, geysers can also become more expensive