Major Appliance Makers Slash AC and Dishwasher Prices Following GST Rate Cut
Leading home appliance manufacturers have reduced prices on room air conditioners and dishwashers after the GST Council lowered the tax rate from 28% to 18%. Effective September 22, price cuts of up to Rs 4,500 on ACs and Rs 8,000 on dishwashers have been implemented. Voltas, Daikin, LG, and BSH Home Appliances are among the brands that have announced significant reductions. The price cuts coincide with the approaching festival season, with companies anticipating increased consumer demand. The industry expects double-digit sales growth during the festive period due to the combination of lower prices and seasonal promotions.
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Leading home appliance manufacturers have announced significant price reductions on room air conditioners and dishwashers, following the GST Council's decision to lower the tax rate from 28% to 18% for these products. The new prices, effective from September 22, see cuts of up to Rs 4,500 on air conditioners and up to Rs 8,000 on dishwashers.
Price Reductions Across Brands
Several major brands have implemented price cuts:
- Voltas: Reduced the price of its fixed speed window AC from Rs 42,990 to Rs 39,590, a decrease of Rs 3,400.
- Daikin: Slashed the price of its 1.5-ton 5-star inverter split AC from Rs 73,800 to Rs 68,020, a reduction of Rs 5,780.
- LG: Lowered the price of its 1 ton 3-star inverter split AC by Rs 2,800, now priced at Rs 32,890.
- BSH Home Appliances: Cut dishwasher prices by up to Rs 8,000, with entry-level models now starting at Rs 45,000, down from Rs 49,000.
Other prominent brands such as Godrej Appliances, Panasonic, and Haier have also announced price reductions in line with the GST rate cut.
Impact on Festival Season Sales
The timing of these price reductions is particularly significant as it coincides with the approaching festival season in India. Industry players are optimistic about the impact of these price cuts on consumer demand. Companies have already begun pre-booking units at the reduced prices, anticipating a surge in sales.
Consumer Benefits
The price reductions represent substantial savings for consumers:
| Product Category | Price Reduction (Up to) |
|---|---|
| Room ACs | Rs 4,500 |
| Dishwashers | Rs 8,000 |
These cuts make premium home appliances more accessible to a wider range of consumers, potentially boosting sales during the festive period.
Industry Outlook
With these price reductions in effect, the home appliance industry is expecting double-digit sales growth during the upcoming festival season. The combination of lower prices and festive promotions is likely to stimulate consumer interest and drive sales across various product categories.
The move by major appliance makers to pass on the benefits of the GST rate cut to consumers demonstrates the industry's commitment to value-based pricing and could potentially reshape the competitive landscape in the home appliances sector.
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