Because the mercury begins to rise, main room air conditioner producers are rising costs within the vary of 5-15% to offset the continued improve in uncooked materials prices and provide chain bills.
The worth hikes will probably be applied from February to April, simply earlier than the height summer time season when demand usually surges.
Main corporations akin to Daikin, Voltas, Bluestar, LG, Haier and Mitsubishi Heavy Industries have introduced worth hikes throughout their fashions, passing on larger enter prices of key uncooked supplies like copper, weaker rupee, new vitality effectivity requirements and better transportation prices.
Business executives stated that though changes are inevitable, gross sales are anticipated to be sturdy this yr because of forecasts for even hotter summers and improved vitality financial savings from new starred fashions.
Daikin India plans to extend costs by as much as 12% from April, and the hike will differ by mannequin, stated Kanwarjeet Jawa, the corporate’s chairman and managing director. P.T.I..
“New vitality requirements have arrived, making merchandise extra environment friendly. Additionally, the worth of supplies like copper has elevated and the US greenback is at an all-time excessive (in comparison with the Indian rupee). On prime of that, there’s a variety of uncertainty because of world turmoil, transportation prices have additionally gone up, and import prices (of elements) are excessive. So there isn’t a various,” he stated.
There isn’t any escape and all corporations within the business have determined to boost costs, Jawa added.
Requested if the worth improve would have an effect on room air conditioner gross sales this yr, he stated: “We count on 2026 to be a sizzling summer time. A minimum of business gross sales ought to attain document 2024 ranges. We should always see not less than 15% progress this yr.” Blue Star managing director B. Thiagarajan stated the corporate had already applied an 8-10% worth hike in mid-February. Nevertheless, there isn’t a vital distinction out there as stock on the previous worth stays in the marketplace.
“Sellers pulled up stock early as a result of they anticipated costs to rise. They purchased in early, so they are going to dump their previous stock,” he stated, including that it’ll take time for brand spanking new heaps at larger costs to succeed in the market.
2025 was not yr for the room air conditioner business as unseasonal rains and different components affected gross sales. The yr earlier than, in 2024, when a number of elements of the nation skilled a extreme warmth wave, the business was experiencing excellent progress.
Specialists say fierce competitors is predicted in India’s room air conditioner sector this yr, with producers competing to seize market share after destructive progress in 2025.
Voltas, a Tata group firm and market chief, additionally plans to extend costs of room air conditioners by 5-15%, passing on the elevated value of uncooked supplies and different objects to customers.
Mukundan Menon, Managing Director, Voltas, stated, “Enter prices are steadily rising because of rising copper costs, weaker rupees, and the introduction of recent vitality effectivity requirements. To make sure that we proceed to offer our clients with high-quality, energy-efficient air conditioners, we are going to implement modest and punctiliously calibrated worth changes within the vary of 5-15% yearly.”
Equally, with the brand new vitality norms, LG Electronics India has additionally seen “a rise of round 7 per cent on three-star fashions and round 9-10 per cent on five-star fashions,” stated Sanjay Chitkara, director and joint chief gross sales and advertising and marketing officer.
“These energy-efficient ACs are about 11 per cent extra environment friendly, permitting customers to avoid wasting on electrical energy payments in the long term, regardless that enter prices akin to copper and aluminum are nonetheless a lot larger than final yr. On the similar time, the discount in GST from 28 per cent to 18 per cent has largely offset this extra value, making it simpler for customers emigrate to extra energy-efficient ACs,” he stated.
This yr, newly revised star scores from the Bureau of Vitality Effectivity (BEE) got here into impact from January 1st. Now, new 5-star room air conditioners based mostly on newly revised BEE requirements are 10% extra vitality environment friendly.
Haier India has additionally elevated costs by 5-8%, stated firm president NS Satish.
“We’ll increase costs by 5% for 3-star fashions and eight% for 5-star merchandise,” he stated, including that the rise would take impact from March onwards.
Concerning this yr’s gross sales, Satish stated gross sales have began rising from final week because the temperature has began rising. He additionally expects this yr’s gross sales to be higher than 2024.
Mitsubishi Heavy Industries, a world chief in superior air con options, has additionally elevated the worth of air conditioners by 5%, firm director Pradeep Bakshi stated. Based on Bakshi, costs are rising as a result of depreciation of the Indian rupee in opposition to the US greenback.
The room air conditioner market is estimated to be roughly 13.5 million models, and opponents embody Voltas, LG, Daikin, Bluestar, Hitachi, Panasonic, and Lloyd.
issued – March 8, 2026 12:41pm IST
