Tea, TVs, cars and apparel to get costlier in August as West Asia conflict fuels fresh price hikes

Kolkata | New Delhi: Consumer goods makers are set to raise prices in August-the third increase across most categories this year-squeezed by volatile raw material prices and higher freight rates due to the West Asia conflict, compounded by currency fluctuations.

A range of products including packaged tea, hair oil, refrigerators, televisions, apparel, and passenger vehicles would see prices go up by up to 6-8% from next month, said industry executives. Companies expect this to be the final round of increases before the onset of the festive season, allowing demand to remain insulated. Festive season consumption commences with Onam in Kerala in August, peaking from Navratri till Diwali, which falls in November this year.

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"We had expected things would stabilise with the West Asia crisis easing," said Haier India chief executive Satish NS. "But the recent flare-up will necessitate another price increase as exchange rates remain volatile and commodity and crude derivative prices stay elevated. The industry has not fully passed on the cost increases so far, which will now be done."

Arvind Fashions, which sells Calvin Klein and Tommy Hilfiger in India, also indicated it may revise prices. Chief executive Amisha Jain told analysts last week that the company is taking active steps to protect profitability amid the prolonged West Asia conflict, including tighter cost controls and potential price revisions.

Apparel brands had so far avoided any major price hikes by selling older inventory bought at lower costs. However, fresh season merchandise procured at higher prices is now reaching stores, making price increases inevitable.

Consumer electronics companies are planning 4-6% price hikes from August across categories. Refrigerator and washing machine prices have already risen more than 10% this year, while television prices are up more than 15%, driven by elevated memory chip costs and supply constraints. Smartphone prices are also continuing to rise as memory chip prices have more than tripled in the past eight to nine months.

India's largest carmaker, Maruti Suzuki, will raise prices by up to ₹30,000 from August-the second increase this fiscal year-to partly offset higher input costs. Honda Cars India will also increase prices from August 1, while Mercedes-Benz India is planning a price hike next quarter to offset rupee depreciation. Tata Motors and Mahindra & Mahindra had already raised prices earlier this month.

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Mercedes-Benz India managing director Santosh Iyer said the company is closely monitoring currency movements before it finalises the quantum of the increase. "Though luxury spending remains resilient, rising import costs and geopolitical uncertainties continue to challenge the industry," he said. The company had already raised prices cumulatively by up to 4% in the first half of 2026.

For FMCG companies, conflict has intensified volatility in petroleum-linked inputs such as linear low-density polyethylene and packaging materials. Both Tata Consumer Products and Bajaj Consumer Care flagged inflationary pressures during earnings calls this month.

Bajaj Consumer Care managing director Naveen Pandey said the industry is facing another period of elevated input costs, with margins likely to remain under pressure in the September quarter before easing gradually. He highlighted that edible oil prices, including mustard and almond oil, are unusually high despite being the harvest season.

Despite the higher prices, companies remain optimistic on demand. Havells India chairman Anil Rai Gupta said consumers have so far absorbed price increases well.