AC manufacturers to hike prices again

10 Mar 2021 CW Staff

With rising commodity prices, the air conditioning (AC) industry is set to witness another round of price hike of about 4-5%.

After the downfall in last year's sales due to Covid induced lockdowns, industry players are optimistic that the industry will get back to pre Covid levels on the back of strong pent-up demand.

Inflationary commodity pricing trends had forced most AC players to hike prices by Rs 1,500 per unit in January. AC manufacturers said prices have been rising across commodities such as copper, steel and plastic. At the same time, the cost of compressors, a crucial component for ACs, for which the industry is still largely reliant on imports, has also seen a steep increase.

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But, the AC industry remains bullish on the coming summer season. Industry players told the media that early sales trends indicate an uptrend in line with rising temperatures, as a positive sign. Given the low penetration of ACs, the category is expected to add new consumers and see strong growth trends, which could be even better than the 2019 levels.

Most players have already geared up a new line up of air conditioners with various features focusing on energy efficiency and air purifying benefits. The size of the AC market is pegged at 7-7.5 million units annually.

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Also read: AC manufacturers commit to export 50% of sales

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