Industry News

LG India is foraying into high end, energy-efficient ACs

LG Electronics India is exiting the regular split air-conditioners, which run on fixed speed compressors and is focusing on premium inverter split air-conditioners

India: LG Electronics India has come up with an aggressive pricing strategy and hi-tech innovation which is expected to lower the price of inverter AC as compared to a five-star regular split AC. According to LG Electronics, the company would sell the air conditioners at a slightly high price than a three-star air conditioner. The company has also priced its 1.5-tonne inverter split AC at USD540 this year as compared to USD700 last year.

According to TechSci Research, the unpredicted weather has affected the market last year and with severe summers predicted this year, the demand for the air conditioners will shoot up. With the companies laying proper strategies, the air- conditioner market is expected to register double digit growths. Moreover, the Indian government, in a move to curb the raising pollution levels, has banned the high energy consuming one-star AC’s in Indian market. This initiative will ultimately reduce the price difference between inverter and non-inverter models.

Along with this the government has introduced new improved energy efficiency guidelines for frost-free refrigerators and also made it compulsory for companies to follow the energy rating rules for hi-end inverter ACs starting from 2018. 

According to a recent report published by TechSci Research, India Air Conditioners Market Forecast & Opportunities, 2011–2021”, the air conditioners market in India is anticipated to cross USD6 Billion by the end of 2021. Light commercial air conditioners segment dominated the country’s air conditioners market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well, owing to their various advantages such as energy efficiency, lower running cost, easy availability and integration of latest technologies. Southern states in India generates the highest revenue from air conditioners in the country, followed by northern states. Few of the leading players operating in India air conditioners market includes Voltas, LG, Daikin, Samsung, Blue Star and Hitachi, among others.