festive sale: Cars, bikes, phones, TV sets and ACs to pinch pockets more this festive season
“We have never seen worse times than these on costs,” said one manufacturer.
Consumer electronic prices may see a spike of up to 8%, whereas cars and two-wheelers may see a rise of 1-2% in the coming weeks. Cars and two-wheeler prices have seen hikes in instalments of 10-15% on several occasions in the past 12-18 months.
Imports Get Costlier
Cars have become dearer by Rs 50,000 to Rs 2.5 lakh, depending on model prices ranging from Rs 5 lakh to Rs 25 lakh. For two-wheelers, the price hikes during this period have pushed up the cost of acquiring a bike or a scooter by Rs 5,000 to Rs 10,000.
Steel has almost doubled, while aluminium and copper have gone up 20-25%. That’s been worsened by the semiconductor shortage – chip prices rising 25-75%. On top of all that is the spike in freight costs, up two-three times, making imports pricier.
The surge has badly dented the price-sensitive two-wheeler market, while car buyers have better absorbed price increases as evidenced by buoyant bookings.
The price of the 10 top-selling car models has changed on five occasions in the first nine months of this year, said Ravi Bhatia, president of consultancy Jato Dynamics India
“Not only that, the weighted average incentives have declined from Rs 13,000 to Rs 8,000 per car,” he said. “The waiting time for deliveries this festival season is high, and the OEMs (original equipment manufacturers) have no other choice other than passing off the burden.”
Smartphone prices are up 3-5% as manufacturers start rolling out new models. Even some existing models have become costlier, researcher IDC said.
Appliance brands such as Bosch, Siemens and Hitachi are raising prices 3-8%. Others are thinking of doing so next month.
IDC India research director Navkendar Singh said smartphone and laptop companies have already factored high input and freight costs into the pricing of new models that are being rolled out before the festive season. Companies have raised prices on some existing products.
Prices of televisions, air-conditioners and home appliances such as refrigerators, washing machines and microwave ovens are set to rise 3-7%. Some companies will likely decide on price tags early next month.