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Refrigerator prices may go up by up to 5%

Highlights

  • Consumers may be burdened with an additional 2-5 percent burden following the implementation of the new norms, say manufacturers like Godrej Appliances, Haier, and Panasonic.
  • The model would determine the said burden.

With the revised BEE (Bureau of Energy Efficiency) norms going into effect on January 1, refrigerator prices are likely to rise by up to 5 percent.

Godrej Appliances, Haier and Panasonic estimate that implementing the new norms will add 2-5 percent to consumer bills. In addition to tightening the labelling, the new norms require separate star labels for freezers and refrigerator provisioning units (storage parts) of frost-free models.

Godrej Appliances Business Head and Executive Vice President Kamal Nandi told PTI, “Now we have to declare labelling for both,” In response to a question about the price increase, he said, “As energy efficiency tightens, the cost inputs go up a little bit in order to achieve better insulation, and the price will go up around 2-3 percent based on the model and star rating.”

Also, another change in the recent star labelling is the declaration of a refrigerator’s net capacity rather than its gross capacity, Nandi said.

A refrigerator’s net capacity is its usable capacity, while its gross capacity is the total volume (of liquid) it can store. There are gaps between the door and shelves, which are not usable. Therefore, they will not be considered,” said Nandi.

In this way, a customer can make an informed decision while purchasing a refrigerator, based on their actual storage space. The energy efficiency of refrigerators has been redefined after BEE revised its norms, according to Haier Appliances India President Satish NS.

There will be 2-4 percent price increases because some of the compressors need to be reloaded or changed, he said, adding “the cost will be passed on to consumers”.

According to Panasonic Marketing India MD Fumiyasu Fujimori, the revised BEE norms will have a significant impact on refrigerator prices by up to 5 percent. Panasonic will try to absorb the cost as much as possible. He said entry-level buyers will be challenged by rising affordability costs.

In 2022, the Indian refrigerator market was valued at USD 3.07 billion and is expected to reach USD 5.88 billion by 2028 with a CAGR of 11.62 percent.

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