​ Stay cool this summer; AC prices to drop by 25%

If you are worried about the hot weather of last few days, you better install an AC if you don’t have already. Just to make you happy on weekend, air-conditioners will experience a price drop soon. And all this is happening because LG has cut prices of its regular and power saving ACs. So to stay in the competition, other brands would follow the same suit.

Despite an increase of 15% in making costs because of steep import duty of Chinese-imported components such as compressors and indoor units, most brands are now looking to cut down the prices.

"Since we vacated the fixed speed AC segment, we got the scale of manufacturing and operations that allowed us to cut prices of the inverter AC," LG Electronics India business head (AC) Vijay Babu told The Economic Times.

LG's current inverter 1.5 tonne AC is priced around Rs 46,000 this year, compared with Rs 51,000 last year: A similar capacity 5 star regular split AC is priced around Rs 39,000- Rs 42,000.However, the smaller brands and online-exclusive manufacturers have cut prices further, selling a unit anywhere between Rs 32,000 and Rs 36,000, as per a news report by the ET.