Rising AC Demand in India Faces Supply Constraints
- brg_news_room
- Apr 23
- 1 min read
India: Demand for air conditioners in India has increased by around 20–25 percent in recent weeks, following a decline of 5–8 percent during March and April. However, supply has not kept pace, with retailers receiving only about 50 percent of their ordered volumes. The shortage is most pronounced in newer energy-efficient models, as compliance with updated government efficiency standards has made production more complex, particularly due to larger outdoor unit requirements. At the same time, prices have already increased due to revised energy ratings and higher input costs, with further upward pressure expected from rising commodity prices, shipping costs, and currency fluctuations.
India’s air conditioner market is projected to grow from USD 5.8 billion to USD 9.6 billion by 2035, supported by low household penetration of around 8–10 percent. Key players such as Voltas, LG Electronics, Daikin, Blue Star, Samsung, and Havells India continue to compete for market share, although current supply constraints are affecting the industry. Additional factors, including proposed government guidelines on AC temperature settings and pressure on margins from global cost trends, may influence market dynamics. Over the longer term, growth prospects remain positive, but manufacturers face the challenge of scaling production and strengthening supply chains to meet demand.
Source: Economic Times
