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Home » News » Rain, 5% price hike to impact AC sales in Apr; industry eyes double-digit growth this season

Rain, 5% price hike to impact AC sales in Apr; industry eyes double-digit growth this season

Jessica BrownBy Jessica Brown Business
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Intermittent rainfall in southern India and recently thunderstorms with modern rain in some parts of the northern regions and they have slowed the rhythm of the sales of air conditioners (RAC) in April, but the industry still hopes to suggest suggesting and sample and sample

RAC manufacturers, including Blue Star, Samsung and Haier, also obtain an increase in the price of up to 5 percent in April, extending the impact on the costs of raw materials and currency exchange fluctuations in the midst of macro -economic volatility.

In addition, the RAC industry continues to depend on crucial component imports, such as compressors, PCBs and fan engines, mainly from China, and is anxiously looking at the confrontation of the tariff triggered by the Trump administration.

Despite such probabilities, the RAC industry expects a two -digit growth in the quarter of June, the season contributes a large part for the sales of cooling products based on compressors, in the high base achieved last year, when it had reported about 35 percent.

The Business Chief of the Godrej devices and the executive vice president Kamal Nandi said that there is a mixed climate impact on RAC Sales so far.

“If we look at the southern market, intermittent rainfall is happening. However, temperatures in the north, west and this have been resumed. Approximately 23 percent of the market, which is the southern region, has not yet been resumed. Surely certain sure is sure is sure is cert.

“April will be a challenge for sales. It will recover in May and June as the temperature has begun to increase,” he said, that Godrej appliances expects a 50 percent high digit growth in the quarter of June.

In the current season, the number of sales and consultations for heavy -duty air conditioners with high tonnage capacity and copper capacitors that guarantee a better longevity and heat transfer are increasing.

RAC units with greater energy efficiency and heavy duty are on demand, since customers also look for powerful cooling solutions for extreme temperatures in summers such as last year, in addition to saving on electricity costs while buying.

“Now people have begun to focus on the capacity for cooling in tonnage,” said the president of Haier India, n satisfied.

Heavy duty RAC has a price difference of ₹ 2,500-3000 with a normal unit.

Haier India is also looking for an increase in prices or RAC by 4-5 percent since April 15, SáSH said.

“This general increase is due to the impact of the escalation of raw materials and currency exchange fluctuations,” he said.

In Las Ventas, SáSH said so far in April, it is lower than last year, but added that sales will collect at the end of the months.

“There will be a growth of 10-15 percent in April year after year,” he said, and added, “this year the season would be good.” Blue Star’s managing director, B Thiagarajan, said: “We have already increased prices up to 5 percent due to raw material and exchange rate. We were the first to do it.” The costs of raw materials, such as copper, steel, aluminum and refrigerant gases, are increasing. At the same time, the Dollar VS Rupee exchange rate has a volatile bone, he said.

By expressing similar points of view, the vice president of digital apps of Samsung India, the business of digital devices, Ghufran Alam, said that considering the highest cost of raw materials and currency fluctuations, the company considers a growth of up to 3 percent.

Godrej Nandi’s appliances have ruled out any increased pricing; However, it is monitoring development, since metals such as copper fluctuate very severely, and with the new tariff policy announced by the Trump administration, steel prices are also uploading.

“The material for the quarter of June has already been presented. Therefore, the impact of any change on basic products or the exchange of currencies will reach Q2 onards,” he said, “I do not think that market prices will increase and any change.”

When asked about any possible impact on the RAC market due to the ongoing tariff war between the administration of the United States and China, a leading components such as compressors, PVC, etc., for cooling products, said ThiaGarajan immediately.

“It is a highly volatile situation. We do not know how the price will go. My concern is not about prices or the cost of entry, but how will the global economy and the Indian market be,” he added.

ThiaGarajan said he expects a two-digit growth or 20-25 percent.

Indian Rac Market is one of the fastest growing markets worldwide, in which some 12-15 companies compete. It is estimated that the market is around 15 million units.

Posted on April 13, 2025

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