Air conditioner (AC) companies expect their sales to grow in double digits or more than 10 per cent this year due to increase in demand as the mercury rises. However, he says that the prices of domestic air conditioners may increase by about five per cent.
The India Meteorological Department (IMD) had recently said that the temperatures are likely to remain “above normal” in the months of April and May this year. Buoyed by this, AC manufacturers… Voltas, Hitachi, LG, Panasonic and Godrej Appliances expect the demand to pick up this time. Two years earlier, the market was disrupted due to COVID-19.
What do companies have to say?
Some companies say that due to the high demand for ACs in this season, there may be a shortage of ACs and other cooling products.
The industry had hiked prices in the last quarter to offset the impact of rising prices of components, metals especially copper and aluminum and rising crude oil prices.
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What about Tata Group?
Pradeep Bakshi, managing director and chief executive officer of Tata Group company Voltas, told PTI, “During 2021-22, the industry had to face double-digit price hikes several times. However, we tried to ensure that customers don’t hold back from buying cool products this summer. That’s why we have given a variety of offers and EMI options.
Sales may be 40 percent
The Consumer Electronics and Appliance Manufacturers Association (CEMA) expects this summer season to account for 35-40 per cent of the year’s total sales. Eric Breganza, President of CEAMA, said, “Prices have been volatile over the past few years. The pandemic made the situation even worse. In the past 18 months, prices in the consumer appliance sector have risen by up to 15 per cent. The industry is under constant pressure due to increase in commodity and raw material prices. Prices may increase from May.
What did other companies say?
Johnson-controlled Hitachi Air Conditioning India says the ‘work from home’ culture is driving the growth of the industry. The company’s chairman and managing director Gurmeet Singh said, “Due to the rising prices of commodities and other commodities, we will have to increase the prices by three to four per cent by April.”
Till last year, the price of three star inverter split AC was Rs 33,500 which has now increased from Rs 36,500 to Rs 37,000.
Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances said, “The last two summers have been affected due to the lockdown and many consumers have postponed purchases. Though work from home culture has been adopted by many companies, the temperature is also rising continuously which will increase the demand despite the price hike.
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Gaurav Sah, Business Head (Air Conditioner Group), Panasonic India, said, “The AC industry is expected to grow in double digits this summer.”
Breganza said that India’s residential AC market is expected to be 70 to 7.5 million units. There are more than 15 companies working in this field.