India Struggles with Compressor Shortage for Air Conditioners

AC Compressor Shortage

India: The availability of compressors for air conditioners remains uncertain, according to B Thiagarajan, Managing Director at Blue Star. While manufacturers have accounted for peak summer demand, any unexpected surge beyond 30% could lead to supply challenges. Thiagarajan attributed the issue to non-tariff barriers on imports, which have slowed compressor availability. "The government is fully aware of the situation and is evaluating how non-tariff barriers should be managed," he said, adding that it may take two to three years for India to become self-sufficient in compressor manufacturing.

Vikas Gupta, Managing Director – Operations at PG Electroplast, highlighted the industry's hope for a government-backed incentive scheme to encourage the adoption of energy-efficient five-star air conditioners. "Five-star ACs can save up to 25% on electricity bills, but cost remains a hurdle. So, we need to overcome by providing some kind of incentive in this," said Gupta.

Source: CNBC TV 18