New Delhi: Consumer durable companies are likely to hike product prices by 5%; in a bid to follow the withdrawal of excise duty sops, coupled with high input costs, says a PTI report.
Expressing views on the price hike, Haier India President, Eric Braganza said: "With excise duty concessions ending, price hike was inevitable. We will also increase our prices in the range of 3-5 per cent depending on models."
Besides, this surge in price will be effective on new stocks, he added.
Commenting on the matter, Business Head and Executive Vice President of Godrej Appliances, Kamal Nandi said: "We are revising prices of our products by 3-5 per cent depending on different models Two major factors have led to price hike -- 2 per cent increase in excise duty and weakening of the rupee against the US dollar that had increased input costs".
As per the PTI report, excise duty in consumer durable segment is now at 12 per cent up from 10 per cent. The government has recently decided against extending excise duty concessions given to the consumer durables industry from December 31.
Manish Sharma, Managing Director Panasonic India and South Asia said: 'The government's decision of not extending excise duty cut on consumer durables will hit the buyer sentiment and impact sales. This rollback of the excise duty has led to an increase in product prices as the burden has been passed on to the consumers.'
"While the new government has made promising policies, promoting growth of the sector, this move will definitely hit consumer sentiment and impact sales," Sharma told PTI.
Following the move, Panasonic has increased price of air conditioners by 3 per cent and the price of home appliances has been increased by 2-3 per cent.
As per a senior official of Whirlpool, the company will increase prices by about 2-3 per cent from mid of January.
Daikin Airconditioning India will also increase prices by an average 4 per cent.
"Although we have been trying to offset the pressure created by the depreciating Rupee and excise duty by holding back prices of our product range, but the continual pressure created by the current economic conditions are forcing us to calibrate our existing prices," Daikin Airconditioning India Managing Director Kanwal Jeet Jawa said.