Air conditioner (AC) manufacturing companies are acting a little cautiously this time. The reason is the unseasonal rains due to western disturbances in many parts of the country, which may affect the sales in the beginning of summer. Usually, the heat starts increasing in March and the demand for cooling products increases rapidly, but this time the weather has increased the concern of the companies. However, the industry is hopeful that the temperature will rise in April and demand will improve.
double blow of inflation
Companies are not only facing the challenge of weather but also of rising costs. Due to the ongoing tension in West Asia, the prices of raw materials, especially plastic, are increasing. Apart from this, limited supply of LPG gas is also affecting the production. According to the industry, due to plastic becoming expensive, prices of large home appliances like washing machines and refrigerators may also increase by 10-12%.
AC likely to become expensive from April
Companies say that prices have already increased this year due to new energy labeling rules. Now due to increase in raw material and transport costs, another increase may be seen from April. It is estimated that from April 1, 2026, AC prices may increase by 5-10%.
LPG shortage affects production
Some companies said that the supply of LPG in factories has been reduced. If this situation continues, AC production may have to be reduced by 20-30%. In fact, giving priority to domestic gas, the government has reduced the LPG supply to the industry. LPG is used for painting and drawing process in making AC, hence it has a direct impact on the production.
impact on customers’ pockets
Due to increase in the price of raw materials, companies can pass this burden on customers. In such a situation, customers may have to buy expensive products or they may go for cheaper options with less capacity.
Summer season will be important
Industry experts say that if the weather does not become normal by the end of March, this year’s sales may be less than expected. Although growth is expected to remain as compared to last year, the chances of record sales like 2024 are less. India’s AC market is around 1.35 crore units, where many big companies are competing for market share. Overall, this time both weather and inflation have emerged as big challenges for AC companies, which can directly impact the pockets of customers.