The scorching summer this year has helped AC and refrigerator manufacturers overcome the slump witnessed in the past two years and post a healthy sales growth of around 15 percent in April and May, according to industry players. The industry is witnessing growth across the country, especially tier-II and III markets.
“Overall sales on industry level for April and May for AC, the growth is between 15 to 18 percent. Last year, for the same period, we had degrowth of 5 to 7 percent in AC sales,” Consumer Electronics and Appliances Manufacturers Association (CEAMA) President Kamal Nandi told PTI. “Refrigerator sales are also growing. It’s not as high as AC. It is around 10 to 12 percent. Both the categories are growing at the healthy growth rate in this summer,” he added.
Voltas MD and CEO Pradeep Bakshi said: “We witnessed high double-digit growth during this period, leveraging our strong all-India footprint.” “The industry witnessed very high traction this summer, starting off in March in the south and central India, and spreading across east, west and parts of the north in April and May,” he added.
Panasonic India recorded a 40 percent jump in AC sales and 60 percent in refrigerators during April-May. “The demand has been high for both categories across the country and we have recorded a rise in sales this season with April and May’s numbers contributing significantly,” Panasonic India President and CEO Manish Sharma said.
Meanwhile, LG Electronics India witnessed 60 percent growth in AC sales and 50 percent in refrigerator sales. According to LG Electronics India VP Home Appliances and Air Conditioners, Vijay Babu: “Across the country, sales have picked up… The best part is that all regions have performed well, especially in the east, which was not doing well till March 15. After heatwave started, all of the sudden east picked up in a big way. ”
Even after Cyclone Fani in Odisha, AC sales were quite high. “After the cyclone, we never expected such high sales. There we have grown by 60 to 70 percent,” Babu added.
Godrej Appliances has also registered healthy sales growth, although it is a small player in the AC segment. “We have done very well. In the refrigerator, our growth is in excess of 20 percent and in AC, we are growing around 30 percent, ” said Kamal Nandi, Business Head and EVP, Godrej Appliances.
Johnson Controls-Hitachi Air Conditioning India has reported 13 percent growth in volume in March to May 2019 compared to the last year. “51 percent growth in volume over 2018 registered from South region only,” the company’s Chairman and Managing Director Gurmeet Singh said.
The Indian room AC market is estimated at around 4.5 million units, with more than 20 companies competing in the space. Devdiscourse