"In the short-to mid-term, I see the fundamentals remaining the same. Though consumer durables industry is being taxed at 28 per cent, which is slightly more than what the previous tax structure, I don't anticipate any major price increases in the coming months," BSH Household Appliances MD Gunjan Srivastava told PTI.
The tax rate for the sector was around 25-27 per cent, which has been hiked to 28 per cent under GST.
"I expect the prices to remain constant at least in the initial period before people understand what how much is the additional cost. But, that would take some time for people to accurately measure. We are also approaching the festival season, so the industry will like to moderate it," he added.
Godrej Appliances business head Kamal Nandi expects prices to go up by 1-2 per cent which could impact demand in the short-run, but expects it to pick up during the festive season.
"Home appliances have become a necessity now with evolving consumer lifestyle and a lower tax slab would have made appliances more affordable in a low-penetrated market.
"With 28 per cent tax under the GST, we expect the consumer price of home appliances to marginally go up by 1-2 per cent. This could have an impact on demand in the short- run," he said.
"Normal monsoons and the resultant boost to the agricultural economy and hike in allowances to government employees will propel demand during the forthcoming festive season," he added.
Panasonic India Chief Financial Officer Manish Gupta said they expect a revision in prices of select category.
"We are expecting the primary sales to retailers from companies to pick up from the second week of July," he said.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.