Possibility of a 5% increase in the price of AC before the onset of summer, tariff and fall in rupee can be the reason

Once the scorching heat starts, you may have to pay more for AC. Companies can increase the price by four to five percent starting in April. The reason for this is that there is a steady rise in the cost of tariff war and commodity prices. Moreover, the continuous depreciation of the rupee against the dollar is affecting the margin of companies.

Blue Star MD B Tyagarajan said that there is room for the company to increase the price of domestic AC by 4-5 percent in April. Due to the weakening rupee, the increase in the cost of imports and the disruption in supply are affecting the margin. The companies depend on two large Chinese suppliers for compressors, who also have plants in India, but their local manufacturing capability is only 25 percent of the total demand.

Industry officials also say that tensions between countries have increased pressure on supply chains. Logistics costs have increased. Availability of essential components has decreased due to production deadlines being affected. Increase in input costs is responsible for the increase in AC prices. Blue Star has launched 150 new models to meet the demand in view of the scorching heat.

Tyagarajan said, there is a demand for smart ACs at this time. Now such ACs have come in which a fixed temperature can be set every hour. He says that if we do not increase the prices, it will directly affect our margins, due to which we may have to compromise on quality.