Monsoon Slows Air Conditioner Sales After Strong Summer Season

Monsoon Slows Air Conditioner Sales After Strong Summer Season

India: India's room air conditioner (RAC) market recorded strong growth during the peak summer season, although demand began to moderate as the monsoon advanced in June. Industry representatives stated that the sector achieved around 25% growth in sales volume and 30% growth in value during the season. However, manufacturers reported continued pressure on margins as rising raw material and commodity costs, following the Iran conflict, could not be fully passed on to consumers. While April and May delivered strong sales, the delayed onset of summer and the arrival of the monsoon shortened the period of peak demand. Godrej Appliances reported 35% year-on-year growth in May, driven by increased air conditioner sales, with the strongest demand coming from southern and western India.

Market analysts noted that RAC demand remained strong from late April through May before easing in June as weather conditions became less favourable. Tata-owned Voltas reported sales of more than one million air conditioners during the season, while analysts indicated that below-normal monsoon forecasts linked to El Niño could continue to support demand if higher temperatures persist. Retailers, including Vijay Sales and Lotus Electronics, also reported double-digit growth in cooling appliances during April and May, with air conditioners, air coolers, fans and refrigerators leading sales. According to the Retailers Association of India, overall retail sales increased by 5% year on year in May, compared with 7% growth in April.

Source: Money Control