Rising heat drives up sales of ACs in India; increase in installation times

Installation times of air-conditioners are stretching to two weeks in certain areas, as sales have surged up to three times compared to the previous year

Unprecedented heat in the southern, eastern, and western regions of the country has caused a surge in demand for air-conditioners at the beginning of the summer season.

According to a report in The Economic Times (ET), installation times are stretching to two weeks in certain areas, as sales have surged up to three times compared to the previous year.

The ET report quoted KJ Jawa, managing director of Daikin India, as saying, "No one in the industry anticipated this high sale — it's a record year."

Girias, a retail chain with 150 stores across Karnataka, Tamil Nadu, and Puducherry, previously sold 500-600 air conditioners daily during the peak summer season. However, that figure has now increased to 1,500 units per day, ET reported.

During last year's heat wave in West Bengal and Odisha, Great Eastern Retail sold approximately 1,200 units daily. This year, the company has exceeded this figure, with sales reaching 1,800 units per day across its 51 stores. Similarly, Vijay Sales, with 135 stores spread across Maharashtra, Gujarat, Delhi-NCR, and Andhra Pradesh, has seen a significant increase in sales. It is now selling nearly 4,000 units daily, compared to around 2,500 units sold last year, ET reported.

According to the report, deliveries and installations are experiencing delays of 10-12 days due to retailers lacking the infrastructure to manage such a sudden surge in demand and brands struggling to replenish stock at the same pace.

Jawa said, "The industry as a whole is struggling with a shortage of on-field installation teams in markets like the South, where there is an unprecedented demand increase. Supplies, too, could become stressed now as we don't have so many components in stock to expand production as per the current demand."

According to the ET report, Pradeep Bakshi, managing director of Voltas, a Tata-owned company, said sales of both air conditioners and air coolers have surged at an unprecedented rate in the last month, driven by heat waves affecting multiple states.

"Companies are grappling with supply chains. As soon as stock reaches stores, it evaporates," Bakshi said.

The ET quoted Shankar B K, chief executive officer (CEO) of Viveks, an electronics retailer in Tamil Nadu, as saying that the most significant increase in sales is occurring in smaller towns, where temperatures are more severe, and brands historically lacked a substantial network of installers due to traditionally lower sales in these regions.