Manufacturers of air conditioners have had the best summer ever this year (ACs). Despite the pandemic Russia-Ukraine war, inflation, and high commodity prices, AC sales in the country have increased.
Dealers say that air conditioners are 45 percent to 50 percent foreign parts (electronic, copper, and aluminum). Unexpected events have messed up the entire supply chain, making ACs 10 percent to 12 percent more expensive than last summer. In addition, high inflation has hurt middle-class families, leaving them with a gaping hole in their wallets of INR4,000 to INR6,000 each month because they have to spend more money on things like food and clothes. There is still a lot going on in the AC market.
In March, 1.5 million air conditioners were sold in India, the most ever, beating the previous record of 0.98 million units by almost 50 percent. Because of the early start of summer and rising average temperatures, 1.5 million units were sold, the most ever. A record number of teams will be sold this year, up from 7.5 million in 2021. It should be a good year for the industry, with sales of about INR30,000 crore.
There will be a lot more cars in the next fiscal year than there were last year. ACs aren’t as common in India as in Europe and Asia, where more than 50% of homes have them. By 2026, the number of people in India who use it is expected to rise to about 13%.
An oasis of comfort
After two years of low sales, a significant boost in demand has been a massive relief for AC manufacturers. Many people buy appliances from companies like Havells India, Voltas, Panasonic, and Haier Appliances India in the summer, which is a good sign for the companies. Panasonic India and South Asia chairman say, “We are in the middle of a party.”
We haven’t had a summer break in two years because of Covid-19 and lockdowns, but this summer has given us more than a break. In the long run, it’s going to be a lot bigger. Haier’s two factories make 1 million units a year each, one is in Pune, and the other is in Noida, producing 1 million units a year.
People buy air conditioners more often in the summer than they do all year, and this is different from other cooling appliances like refrigerators, which sell yearly. Until now, that wasn’t the case. There has been a rise in the work-from-home (WFH) and hybrid work culture, and ACs have become more critical than luxuries. Inventiva