Why are India's consumer durable makers locked in intense warranty war?

Brands are offering warranties on washing machines and dishwasher motors for up to 20 years, which are being marketed as 'lifetime' guarantees

Major consumer durables brands like LG, Samsung, Haier, and Godrej are engaged in a competitive warranty war to attract customers and increase their market share. To stand out, various brands are offering longer warranties on key components of their products, such as refrigerators, air-conditioners, microwave ovens, and washing machines, The Economic Times reported on Saturday.

The warranties on compressors for air-conditioners and refrigerators can now reach up to 10 years. Similarly, washing machines and dishwasher motors are being offered with warranties for up to 20 years, which are being marketed as "lifetime" guarantees, the report said.

The overall comprehensive warranty by the brands on their products has remained the same, which is for up to three years.

When Business Standard looked up on the e-commerce platform Amazon on Saturday, Samsung’s 2024 frost-free double door refrigerator model with digital inverter is being sold with one-year comprehensive warranty and a 20-year warranty on the digital inverter compressor. 

Similarly, Godrej’s 2024 model fully-automatic front load washing machine, with artificial intelligence technology, offers 10-year warranty on wash motor and 2-year warranty on the product, the Amazon website shows.

Retailers told the Economic Times that consumers, particularly those above the age of 35 are increasingly getting lured to these extended warranty offers, driving sales. According to the media outlet's report, a Haier study shows that warranty is the third-most important factor some buyers consider, which is potentially contributing to this frenzy. 

However, the report cited leading electronics retail chain Vijay Sales’ director, Nilesh Gupta's comments on the development, who told them that consumers typically upgrade their household appliances every five to eight years.

This indicates that while longer warranties can be attractive, its feasibility can also be influenced by consumers’ tendency to frequently replace existing products for the latest technology.