Samsung, National Usurp Ac Mart In Jan-Apr

The airconditioner market is witnessing a churning. Korea's Samsung and Japan's National have increased their market shares substantially during the first four months of the year, January-April.

Both the companies are tied at the second slot, trailing marginally behind leader LG Electronics.

Carrier, the dominant player till 1999, has descended to the fifth position while Hitachi (from Amtrex Hitachi) is in the fourth place.

From January to April, total AC sales are estimated at 1,45,000 units. The growth in terms of sales would have been better if intermittent rains had not marred secondary sales, say sources.

LG, which led the race with a 20-per cent market share in 2000, gained 22 per cent of the market at the end of the January-April 2001.

 

Samsung and National (of Matshusita Electric) have maintained a 17-per cent market share each during the four-month period, compared with 10 per cent and 11 per cent, respectively, in the whole of 2000.

Analysts say Samsung is gung-ho, encouraged by large shipments from Korea, while National is cashing on its strong brand equity.

The two firms were followed by the Lalbhai and Hitachi joint venture, Amtrex Hitachi, which had a 12.4 per cent market share against 12 per cent in 2000, and Carrier which had 11 per cent share against last year's 17 per cent.

The share of Voltas declined from 10 per cent in 2000 to 8.2 per cent in Jan-April 2001, while Videocon improved its share from four per cent to 5.5 per cent.

The AC market has shown a compounded annual growth rate of 25 per cent for the past two years and is expected to sustain this trend for the next two or three years. Since the market size was 3.6 lakh units in 2000, year 2001 should end with sales of 4.85 lakh units, say analysts.

The decline in sales during the last two or three months has impacted the business drastically. For instance, Carrier is complaining of a more than 50 per cent drop in sales.

Of the total market, the organised sector in 2001 is expected to contribute 80 per cent, compared with 70 per cent last year.

In terms of product category, the split AC models contributed 20 per cent of sales in 2000, with window ACs constituting the remaining. In 2001, window AC segment is expected to contribute 75 per cent, with the share of splits growing to 25 per cent, sources said.