Industry Odisha Bureau, Sep 13: Copper prices have climbed above $14,000 a tonne. The metal touched a record $14,858 before easing. It ended the weekend near $14,240. Indian manufacturers now face mounting input-cost pressure. Electric vehicles and home appliances sit among the most exposed categories.
Copper Surge Hits Indian Manufacturing
The rally partly reflected fears of higher US copper tariffs. Prices retreated after reports Washington was reconsidering those plans. US officials reportedly worried tariffs could raise domestic copper costs further. Indian manufacturers across autos, electronics, construction and agriculture now face a similar choice. They can absorb costs, substitute materials or raise prices.
EVs Face Bigger Copper Cost Burden
Electric vehicles use considerably more copper than conventional models. Some electric cars contain roughly 80-85 kg of copper. An ICE passenger car typically carries only 20-25 kg. Electric buses can require 250-300 kg. Using a $9,500-a-tonne benchmark, industry estimates suggest higher underlying costs. Some electric cars could see over ₹40,000 in additional copper costs. Electric buses could face ₹1.27-1.52 lakh more. These remain underlying manufacturing estimates, not confirmed retail increases.
Maruti, Tata Motors and Mahindra Face Exposure
Industry estimates put Maruti Suzuki’s incremental monthly exposure at ₹204 crore. Tata Motors faces an estimated ₹171 crore. Mahindra & Mahindra’s estimated exposure stands at ₹110 crore. These figures reflect industry calculations, not confirmed company losses. Kinetic Engineering’s Ajinkya Firodia called copper prices another EV economics headwind.
Home Appliances Could Become Pricier
White goods face similar underlying pressure. A 1.5-tonne split air conditioner could see ₹3,300-4,300 in added costs. A double-door refrigerator could face ₹1,300-1,800. SPPL, licensee for Kodak and Thomson in India, is raising prices 7% this month. Haier Appliances India has already lifted prices 10-12% recently. It may add roughly 2% more in October across mid-range and premium models.
Aluminium Emerges as a Copper Alternative
Solar manufacturers and data centres are shifting toward aluminium in some components. Swelect Energy Systems has already replaced several copper parts with aluminium. Its Managing Director, Arulkumar Shanmugasundaram, said the company still depends on imported high-grade copper. Substitution helps in select applications but cannot replace copper everywhere.
Telecom, Construction and Agriculture Feel the Pinch
Copper price rises are squeezing circuit boards, transformers, connectors and cabling. GX Group’s Paritosh Prajapati said costs are climbing across electronics and telecom manufacturing. Construction faces indirect exposure through transformers, chillers, lifts and motors. Copper sulphate, used in Bordeaux mixture against fruit rot, has risen from ₹80 to ₹500 a kilogram.
Manufacturers Rethink Procurement
Companies are renegotiating long-term contracts into shorter terms. Others are diversifying sourcing and tracking material costs more closely. Many are building festival-season inventories covering two to three months. Industry executives expect margin pressure to intensify in coming weeks.
Copper’s climb is increasingly linking global commodity markets to household budgets. How much of that cost manufacturers absorb, and how much reaches consumers, remains the open question.
