Sweltering summer across India has lead to a spike in demand for products including air conditioners, refrigerators and coolers. This surge in demand comes two years after subdued sales. Consumers are flocking to purchase these home appliances in an effort to beat the heat that has surged to an unbearable level.
Although the sales of ACs have been growing steadily over the past three years, this year has seen a marked increase in sales. As per the Business Today, between 2021 and 2023, AC sales had grown by 15% a year. However, this time the growth in sales volumes are already up by 25% over last year.
Business Today quoted B. Thiagarajan, Managing Director, Blue Star and said that AC sales has been growing fast since early summer with summer heat rising early in the south and west India. To meet the growing demands, companies like Blue Star have also started to manufacture AC components under the production linked incentive (PLI) scheme. This has helped them to sell ACs at competitive price.
“As a result, the steady price rise that the industry has been witnessing over the last several years, have cooled off - helping consumers,” Thiagarajan told Business Today.
Kamal Nandi, Business Head & Executive Vice President, Godrej Appliances told the publication that the industry expects the AC market to grow by over 30% in 2024. He further added that Godrej is registering 50% year-on-year growth.
“AC sales in 2024 are on a different trajectory. It is growing phenomenally. The way summer has panned this year, we expect the market to grow by over 30% in 2024,” Kamal Nandi told Business Today
Similarly, the sales of refrigerators have also seen an upward trajectory this summer. As per Business Today, refrigerator market remained flat as mass segment - primarily direct cool categories (single door refrigerators) registered de-growth by 6-7% in unit sales last year. Meanwhile in 2022, mass segment was flat but premium grew by 20-22%, resulting in an overall growth of 7-8%, which was lower than 10% overall growth in 2021.
“Now both are growing at equal pace. This is one change that we now witness in three years,” says Nandi. The refrigerators market in India is about Rs 25,000-26,000 crore or 13 million units a year.
Also watch: AC demand soars amid surging mercury and a sweltering summer ahead