Air-conditioner prices to go up 12-15%

Chennai: The ensuing summer months will see not just temperatures rise but also the prices of air-conditioners. AC prices are expected to go up by 12-15 per cent this year as most manufacturers are passing their input costs on to consumers.

AC manufacturers are buckling under the pressure of high import duties, falling rupee and revised energy efficient norms. “Over 50 per cent of AC parts are imported, rupee depreciation is a big dampener for the industry,” said Saurabh Baishakhia, AC business head, LG Electronics. The exchange rate has gone up by 34 per cent from 2010 to 2013, pushing up input costs, he added.

Another cause for concern is the star–rating norms introduced by the Bureau of Energy Efficiency that change year-on-year, said Gulu Mirchandani, CMD of Mirc Electronics Ltd, makers of Onida brand of products.

“What was 5-star AC in 2010 is only a 2-star AC in 2013 as per the revised norm and it is a costly proposition to keep investing in these parts. Hence, we are forced to pass on a part of the burden to the consumers,” added the Onida chief who has launched 28 new models.

For now, a five-star rated AC costs around Rs45,000, while an inverter AC may come for Rs52,000. The minimum price of an AC could be anywhere between Rs22,000 and Rs25,000.

But undeterred by the price hike, consumers are upbeat about buying AC with most of them opting for energy-efficient ACs in view of rising power tariffs. “Energy efficiency is a key parameter for consumers while making purchasing decisions for air-conditioners,” said Rajeev Bh­utani, director of Sa­msung India, that unv­eiled its digital inverter series for the season.

“Inverter ACs and 5-star rated ACs saw a 246 per cent and 31 per cent growth respectively last year,” said Baishakia. The market leader has come out with 90 new models for the season with new product innovations like ACs fitted with ultrasound device to keep mosquitoes away.