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Looking to buy AC, fridge this summer? Get ready to pay more

With the approaching summer months, the demand for air-conditioners and refrigerators is set to go up which will put further strain on the prices of these products if the supply disruption is prolonged

twitter-logoBusinessToday.In | February 19, 2020 | Updated 16:49 IST
Looking to buy AC, fridge this summer? Get ready to pay more
The coronavirus outbreak has crippled operations of manufacturing hubs such as Hubei and Shenzhen in China

Coronavirus outbreak has impacted the prices of consumer durable products which have gone up by 5-10%, according to Novel Coronavirus - Asiawide on-the-ground impact report.

The report said that the manufacturers are grappling with a shortage of components and finished goods imported from coronavirus-hit China as the electronics and consumer durables face supply chain disruptions.

With the approaching summer months, the demand for air-conditioners and refrigerators is set to go up which will put further strain on the prices of these products if the supply disruption is prolonged.

Also Read: Coronavirus scare in India: Huge capacity to manufacture masks, gloves, but govt yet to place orders

"Indian electronics and white-goods manufacturers rely heavily on Chinese supplies for television panels, LED chips, compressors for refrigerators and air conditioners, and motors," said the report.

"There has been a disruption in the supply chain with regards to these critical components for Indian brands. The prices of these products have increased by 5-10% and could increase further if the supply disruption is prolonged," it added.

The report went on to say that the Indian businesses are also complaining of "no commitment from Chinese vendors on when materials would be delivered as their inventory buffer gets exhausted."

The companies also rued that the slowdown of port operations is another threat area for them and if the port shutdown continues, there could be further supply chain disruptions.

Also Read: How consumer durable brands are wooing millennials?

 The report further highlighted that "any shift in global supply away from China" will benefit countries like India whose "garment and textile exporters could see busier order books in the short term."

The coronavirus outbreak has crippled operations of manufacturing hubs such as Hubei and Shenzhen in China, forcing factories that produce components and finished products for the global market to curtail their production sharply.

At the same time, as travel restrictions continue in China, the workers are not able to rejoin factories after the prolonged Chinese New Year holiday.

Also Read: TV, AC, refrigerator sellers look forward to festive season for sales revival

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