Japanese Air Conditioner Manufacturers Expand Operations in India Amid Rising Demand

Japanese Air Conditioner Manufacturers Expand Operations in India Amid Rising Demand

Japan: Japanese air conditioner manufacturers, including Daikin Industries and Fujitsu General, are increasing their investment in India, targeting one of the world’s largest and fastest-growing markets. India currently has a low household penetration rate for air conditioners, with only around 7% of homes equipped with such units, despite experiencing extreme temperatures. Daikin plans to open a new factory in India by 2030 to expand its current production capacity from 3 million to up to 7 million units annually. It leads the commercial air conditioning segment in the country and holds an 18% share of the residential market. Daikin is also promoting energy-efficient technologies and has partnered with Taiwanese company Rechi Precision to locally manufacture compressors, aiming to reduce production costs and support future growth. The company plans to expand its after-sales service network by increasing the number of dealerships to over 20,000 by 2030. 

Fujitsu General is focusing on the commercial air conditioning segment, where product value is higher, and aims to expand its sales network to 600 outlets by fiscal 2025. It anticipates 322 billion yen (approximately USD 2.28 billion) in global air conditioner sales for the year ending March 2025, with 84% of revenue expected from international markets and 55 billion yen (approximately USD 389 million) from Asia, including India. Fujitsu General has introduced cooling-only units capable of functioning in temperatures up to 55°C and has secured public sector contracts in India. Mitsubishi Electric is also establishing a new residential air conditioner factory in southern India, expected to begin production in October 2025. India recorded demand for 9.23 million air conditioner units in 2023, making it the third-largest market globally, and its market value is projected to rise from 5.41 billion USD in 2024 to 8.07 billion USD by 2030. 

Source: Nikkei Asia