Price Hike | TV Mobile Phone Car Price Increasing Due To Input Cost Check Effect On Demand

The prices of all things within the reach of middle class families are increasing. Nowadays TV, mobile are in every home. Upper-middle class families also own cars. But the prices of all these things have started to rise. The prices of things like cars, TVs and smartphones are increasing by leaps and bounds. The companies have clarified that the price of the goods is increasing as the price of raw material increases. Its main villains are said to be copper and aluminum. Because the prices of these two things have increased recently. Also, rising prices of components like memory chips and display panels and above all the weakness of the rupee against the dollar continue to hurt manufacturers’ profit margins.

Effect on demand if price increases?

The companies say that even if the price increases, the demand is not likely to decrease. Car companies like Maruti Suzuki, Honda Cars India, Toyota Kirloskar Motor and Kia India hiked their car prices by up to 3 percent this month due to rising product costs. Also, the cost of things like memory chips and display panels are acting as a big factor in the rise in smartphone prices.
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According to Tarun Pathak, director of research at market tracker Counterpoint, smartphone prices may increase by 2 to 3 percent. Currently most of the current mobiles cost around 20,000 rupees. In such a situation, the price of the mobile phone may increase by around 600 rupees.

Officials associated with the industry say that the price of computers may go up for the new launch. But the prices of older models are not likely to drop anytime soon either. The same applies to older smartphone models. Following a 30-35 percent rise in panel or open sale prices in the March quarter, many TV brands hiked model prices by 5 to 7 percent in two weeks. Shailendra Katyal, MD, Lenovo India, said that there has been an upward trend in the prices of some components for the past three-four months.

Dixon Technologies MD Atul Lal said that the prices of things like copper, aluminum, zinc and some polymers have increased. Due to which the cost of production is also increasing, Maruti Suzuki India has increased the price of Swift by Rs 25,000. Also, the Grand Vitara SUV has increased the car price by up to Rs 19,000 on select models. Notably, these cars are among the best-selling models. Kia India has increased the prices of several vehicles by up to 3 percent. However, companies feel it will not have any significant impact on demand.

On the other hand, Samsung India Senior Vice President (Visual Display Business) Mohandeep Singh said consumers upgrade TVs every six-seven years. In this situation, even if the price increases, the demand is unlikely to decrease.