The Hitachi Air Conditioning India is expecting a 15 percent growth in the residential AC segment this year led by its inverter range, said a top company official.
The company, which mostly operates in the premium residential AC segment under brand Hitachi, is expecting to almost double the sales of its inverter range of ACs and around 50 percent growth in sales of 5-star inverter ACs over the previous year. Besides, Hitachi, which is expanding its channel network in tier-II and III markets, has also introduced new models designed specifically to cater to the first time and mid-segment AC buyers.
“We will continue to be one of the top brands in the air conditioner segment. We expect to grow much faster than the market and achieve nearly 15 percent growth (by value) this year,” said Johnson Controls-Hitachi Air Conditioning India Chairman and Managing Director Gurmeet Singh.
According to its strategy, Hitachi, which is revamping its brand identity, would focus on south and west region markets. “With this new brand identity, our growth addresses the inherent consumer needs and will be driven by a strong sales and marketing push in south and west markets this year,” he said. Hitachi had witnessed over 24 percent year-on-year growth (y-o-y) in room AC last year against the industry growth of 7 percent.
“This growth was driven by the company’s focus towards providing energy efficiency and green products along with easy finance options. We are one of the top brands in India with a 12 percent market share in the AC segment and intend to add a percent or two by the end of 2019-20,” he added. The Indian residential AC market has witnessed almost flat growth in the past two years, but Singh expects a “turnaround” this year in the industry. According to Singh, India is witnessing a continual shift towards inverter ACs, which now contributes around 40 percent of the overall industry sales.―The Hindu Business Line