Industry News

Air Conditioner sales are witnessing early demand this year with the heat arriving early this year

India: With the summers coming early this year the sales of AC’s and refrigerators, have gone up very high. This year the market is expected to witness a growth of 15-20%. The market which was sluggish from the past three years is forecasted to witness a twofold rise this year with the temperature being 3 degrees above normal in the major parts of the country.

According to Sanjeev Bakshi of Videocon AC industry sales will top 4 million units this year. The last three years were near stagnant and the industry closed 2015 with sales of nearly 3.6 million units. 

The Air conditioner market witnessed increase in sales due to soaring temperatures in south India in states like Andhra Pradesh, Telangana, Tamil Nadu and Kerala. The night temperatures also have gone beyond 35 degrees which is driving the Air conditioner market this season.

According to TechSci Research the demand for Air conditioners will witness has huge demand during period between March and May is critical for the AC makers as it contributes nearly two-thirds to the industry's sales during this period. The heat wave has arrived ahead of the normal time and hence the companies are also increasing the production this year to fulfil the demand for this year.

According to a report published by TechSci ResearchIndia Air Conditioners Market Forecast and Opportunities, 2020”, the Indian air conditioners market is projected to grow at a CAGR of over 10% during 2015-20. The split air conditioners segment was the highest revenue generator, followed by VRFs and window air conditioners in 2014. Northern India generates the highest revenue in the country’s air conditioners market, followed by Southern and Western regions