It?s just been two days since the prices of steel have been rolled back by the producers but major consumer durable manufacturers have started reworking on their pricing strategy. While Samsung India is mulling to hold the price increase on air conditioners, LG Electronics is planning to pass on a miniscule part of it to the customers unlike 3-5% that it was contemplating earlier. Another major, Electrolux is adopting a wait-and-watch approach before it decides to roll-back prices.
?Due to continuous increase in input costs, we were contemplating an increase in prices of air conditioners. But after the steel prices have come down, Samsung will see if there is a downward trend in the industry and hence may not go for a hike,? says R Zutshi, deputy MD, Samsung, adding that however, there is no scope of rolling back the increase in prices of refrigerators announced in March.
?As early as April, we had increased prices of refrigerators by 2-5% and of ACs by 5%. The company would adopt the wait and watch policy now before we plan to bring down prices,? adds Madhav Nene, GM, Electrolux.
?Earlier we were planning to hike prices of ACs and refrigerators by 3-5%, the second increase since December when the company had hiked prices by 2-3%. But now the company would try passing the minimum burden on to the consumer,? adds V Ramachandran, director, LG Electronics.
The recent reduction in prices of steel by Rs 4,000 a tonne has come as a respite to the companies as the steel prices had soared up by around 45% since January this year.