AC makers to hike prices, production this summer

Costly Affair

- AKSHARA SRIVASTAVA

As temperatures shoot up this month, signaling an early onset of summer, sales of air conditioners (AC) are set to increase, with companies expected to hike the prices of ACs by 4-5 percent due to component shortages.

Leading players like Haier and Bluestar and suppliers like EPack Durables have raised their production capacities to meet the 25-30 percent rise in demand expected in the coming months.

For consumers, prices are expected to rise by ₹1,500-₹2,000 due to a shortage of compressors, copper tubes, and quality control guidelines, industry insiders said, as companies were likely to pass on the increase in the cost of production to the end users.

Bluestar has hiked prices by 3 percent in February this year, while Haier is evaluating a 4-5 percent hike in prices if the current conditions, including a highly volatile dollar, continue.