Air Conditioner Market

Unseasonal weather, inflation cools AC sales, ice cream, beverages gain

Demand for summer-centric products remained uneven during the June quarter, as weather-related disruptions and higher prices weighed on the air-conditioner market, while categories linked to refreshment, hydration and impulse consumption continued to benefit from seasonal demand. According to industry experts, air-conditioner sales slowed in June amid unseasonal weather and inflationary pressures, while beverages, ice cream and dairy products continued to register healthy growth, driven by immediate consumption and affordability. Godrej Enterprises Group Business Head and EVP (Appliances Business) Kamal Nandi said demand across cooling categories has been mixed. "Refrigerator is doing very well, and demand is high both for mass and premium segments. Washing machine demand is also picking up as we are entering the monsoon season," Nandi told PTI. However, Nandi said the air-conditioner industry has seen a significant decline in demand. "June across the country, including north India,

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Voltas sells record 1 million AC units in Q1FY27 amid strong demand

Leading room air conditioner maker Voltas said it has crossed the milestone of selling one million units within the first three months of the ongoing 2026-27 financial year. The Tata Group company claimed it has achieved the landmark in record time and further strengthened its leadership position in the Indian room air conditioner (RAC) market. In 2023-24, Voltas claimed to have achieved the two-million RAC sales milestone, which was the industry's first. Earlier in April this year, rival LG Electronics India also announced that it has crossed the one-million air-conditioner sales mark in the first quarter of calendar year 2026, ahead of the peak summer season, underscoring strong demand momentum in the country's RAC market. The Indian RAC industry size is estimated to be approximately 12.5 -14 million units annually. Voltas attributed the milestone to a series of strategic initiatives undertaken over the past year, including a refreshed product portfolio with differentiated offer

LG expects India to remain its largest global AC market by volume

South Korean consumer electronics major LG expects India to continue to be its number one market globally for residential air conditioning by sales volume with the country offering significant growth potential, according to a senior company official. India, which is among LG's top three HVAC (heating, ventilation, and air conditioning) markets globally along with the US and Brazil, however, has room for growth in the commercial air conditioning business, LG Electronics Head of Eco Solution Asia/India Sales & Marketing Department, Kiyoon Seong told visiting Indian journalists here. "India has a large population and relatively low AC penetration, which indicates significant growth potential. India is already one of LG's top three HVAC markets globally. In the RAC (residential air conditioning) business, India is LG's number one market worldwide in terms of sales volume," he said. Seong was responding to a query on the significance of the Indian market for LG and its ranking among ...

Andhra min lays foundation stone for Carrier Global's ₹1,000 cr AC facility

Andhra Pradesh IT Minister Nara Lokesh on Wednesday laid the foundation stone for Carrier Global's air-conditioner manufacturing facility at Sri City in Tirupati district, with the company set to invest Rs 1,000 crore in the project. The facility is expected to generate employment and livelihood opportunities for around 3,000 people, both directly and indirectly, while strengthening the state's manufacturing ecosystem. "Lokesh laid the foundation stone for Carrier Global's Rs 1,000 crore AC manufacturing facility in Sri City which marks another major step in Andhra Pradesh's industrial growth journey and will create large-scale employment opportunities," said an official press release. The project is part of the state government's broader push to position Andhra Pradesh as a major manufacturing and industrial hub, particularly in advanced cooling and infrastructure-related sectors. Carrier Global's investment is expected to further strengthen Sri City's growing ecosystem for ...

India's AC boom could trip the power grid, but policy is the real problem

India's cooling demand is surging with rising heat and incomes, but outdated rules are slowing adoption of cheaper, cleaner refrigerants that could ease pressure on the power grid

Despite headwinds, air-conditioner growth to remain healthy this summer

Strong summer demand, low base and inventory push to support AC growth despite price hikes, raw material inflation and evolving energy efficiency norms

AC prices to rise 5-15% on expensive copper, weak rupee, new energy norms

As the mercury starts rising, leading room airconditioner makers are increasing prices in the range of 5-15 per cent to offset sustained increases in raw material costs and supply chain expenses. The hikes, being rolled out between February and April, come just ahead of the peak summer season when demand typically surges. Leading players, including Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi Heavy Industries, have announced increases across models, passing on higher input costs for key raw materials such as copper, a weaker rupee, new energy-efficiency norms and an increase in freight costs. Industry executives said while adjustments are unavoidable, they expect strong sales momentum this year, aided by forecasts of a hotter summer and improved energy savings from new star-rated models. Daikin India is going to increase prices by up to 12 per cent from April, and the hike in prices would depend on model to model, its Chairman & Managing Director Kanwaljeet Jawa told ...

Voltas Q3 margins surprise, but brokerages flag cost, demand risks

Voltas posted largely in-line revenue for Q3, but better-than-expected profitability, particularly in its UCP segment, prompted a reassessment of near-term margin trends among analysts.

Nuvama trims Voltas FY26-27 earnings estimates amid demand woes

Voltas management has indicated that Q3FY26 trends are in line with internal expectations, with most sales still driven by products under the old energy rating table.

Daikin to invest ₹1,000 cr in Haryana, Kubota to infuse ₹2,000 cr

Japanese conglomerate Daikin will invest Rs 1,000 crore in Haryana to set up a research and development (R&D) centre which will focus on the development of advanced technologies and sustainable industrial solutions, the state government said on Wednesday. A Memorandum of Understanding (MoU) was signed in Osaka, Japan in the presence of the state Chief Minister Nayab Singh Saini, who along with a high-level delegation is on an official visit to the country from October 6-8. Under this agreement, Daikin Industries Limited will invest Rs 1,000 crore in Haryana to establish a new R&D centre, which will generate employment opportunities for the youth, a state government statement said here. The MoU was signed by Amit Kumar Agrawal, Commissioner and Secretary, Department of Industries and Commerce, Haryana, and Shogo Endo, Deputy Managing Director, Daikin Industries Limited. The Haryana delegation members include Industries and Commerce Minister Rao Narbir Singh, Chief Principal ...

Why do analysts expect Voltas' demand to recover in second half of FY26?

Analysts highlighted elevated channel inventory, delayed consumer purchases, and a weak summer season as key challenges for the quarter for Voltas.

Europe turns to air conditioning as extreme heat becomes new normal

This spring, the owners installed air conditioning - discreet Mitsubishi Compact+ units mounted against the exposed stone walls to preserve the château's traditional charm

Brokerages cut EPS estimates, downgrade Voltas on weak RAC demand outlook

According to JM Financial, Voltas and the overall RAC industry saw a 20-25 per cent year-on-year (Y-o-Y) volume decline in April and May, primarily due to unseasonal weather.

High inventory, weak demand dent prospects of air conditioner makers

Rain came early, sales didn't as cooling firms face a bloated inventory and damp volume squib

India bought 14 mn ACs in 2024: Cooling boom adds to environmental burden

More air conditioners will also increase the demand for electricity, most of which comes from burning coal - a major source of climate pollution

Govt mulling scheme to lure users to replace old AC with new 5-star models

Consumers may be able to turn in their old units and receive a certificate that can be redeemed while purchasing a new five-star AC, that can save up to ₹6,300 a year in electricity bills

India's heat waves drive air conditioner sales, defying consumer slowdown

Blue Star Ltd. expects as much as 30 per cent growth over the summer, with a significant increase in sales in smaller cities, Managing Director B Thiagarajan said

Godrej Enterprises Group eyes 50% growth in AC sales in FY26 on high demand

Godrej Enterprises Group expects sales of its air conditioners to grow 50 per cent in the next fiscal on the back of continued robust demand and its new range of products, including smart ACs, a top company official said on Tuesday. With the early onset of summer, the group expects the overall industry demand for ACs to be strong at around 30-35 per cent growth but not as high as 60 per cent witnessed last year due to a high base, Godrej Enterprises Group, Business Head & EVP, Appliances Business Kamal Nandi told PTI here. The group on Tuesday ramped up its AC portfolio, including a premium range of smart ACs and also announced its foray into the commercial AC segment with Cassette ACs and Tower ACs. "We will be ending this year (FY25), doubling our volumes. We will be closing this year with about 10 per cent market share. This is up from 6.7 lakh to 14 lakh units. We are growing more than 100 per cent against industry growth that will be roughly about 36 per cent," Nandi said ...

AC companies likely to raise prices by 4-5% due to component shortages

Haier, the third-biggest home appliances maker in the country with a close to 10 per cent share in the AC market, is ramping up capacities to address increased demand in the coming period