Amid rising temperatures, the demand for cooling products, especially air conditioners, has seen a significant increase, with the industry registering record sales of nearly 6 million units in the first half of this year.
AC sales increased even though manufacturers have hiked prices two to three times in the last six months, with an impact of around 10-15 percent, as they face uneven inflationary pressure from metals to key components and logistic cost increases such as sea freight.
Voltas has sold around 1.2 million units of residential ACs, while LG Electronic India has sold over one million units of residential inverter air conditioners in the domestic market in the first half of this calendar year, they say.
However, some players are reviewing changes in their input costs as the Indian rupee is depreciating against the US Dollar, due to the increase in import prices of components and the recent revision by the Department Government Energy Management (BEE) at AC star rating.
In the first half of 2022, other air manufacturers such as Hitachi, Daikin, Panasonic and Haier – also saw a trend of increase in their unit sales and expect an encouraging year for the rest of the second half, although it was about 25 percent. their purchases.
The first half of this year has been very good for the air conditioning industry, in the heat of the moment there are no closing restrictions, said the President of the Electrical and Equipment Manufacturers (CEAMA) Eric Braganza.
“January to June AC (domestic) should be around 6 million units. We haven’t had this much sales in the past. I hope the second half is in the region is about 2.5 million units and by the end of this year it should be about 8.5 million units,” Braganza told PTI.
In 2019, when the market was not affected by the epidemic, the company sold about 4.25 to 4.5 million units in the first half.
Daikin India Chairman and MD KJ Jawa said the company has sold around 4 lakh units in April-June and around 7 lakh units in the first half of 2022.
“We have increased 30 percent (in units) for 2019 (before the epidemic) and more than 175 percent last year,” he said.
Voltas has sold around 1.2 million AC units in H1 CY 22, the highest among all players in the industry. This has led to an increase in the demand for cooling products during the summer season across the country and the company’s strong online and offline distribution network and strong brand equity, said the Tata group firm in in a story.
Similarly, LG Electronic India sold over one million units of residential air conditioners in the domestic market during H1 reporting a growth of nearly 50 percent compared to last year, the students leave 90 percent.
It has collected revenue of Rs 4,000 crore from the AC segment during January-June, said LG Electronics India VP, Home Appliances & Air Conditioner Deepak Bansal.
Manufacturers such as Panasonic India also saw a 35 percent growth in the number of units sold in the first half of 2022, compared to pre-pandemic 2019.
“Overall, more than 35 percent growth this summer (vs FY2019) for Air Manufacturers; recording the highest sales in the month of March,” he said “buyers are also moving to sales revenue as we have seen high demand for AC inverters, with significant contribution from 4-star and 5-star AC inverters,” said Panasonic India Business Head, Air Conditioners Group Gaurav Sah.
According to Haier Appliances India, President Satish NS “We have achieved 70 percent YoY growth in value; we have achieved 60 percent YoY growth in units sold in H1 ’22 ,” he said.
In addition, manufacturers are expecting good sales of residential air conditioners in the month of July to December, although they account for about 25 percent of industry sales.
“Although the peak season for the AC market is in April – June, we expect a good festive period for the industry and the appliance segment will grow,” added Satish.
Johnson Controls-Hitachi Air Conditioning India, which sells residential AC under the Hitachi brand, reported more than 20 percent growth in FY 22-23 (over 2019) in the Indian market and expects to achieve record sales of around Rs 1,500 crore. , said its Chairman and Managing Director Gurmeet Singh.
Now that the Indian rupee is close to Rs 80 per dollar, some producers are reassessing input price changes for further pricing decisions as gas-oil remains dependent on imports (which 25 to 30 house additions per cent only)
“Based on the market and the increase in the prices of goods, we have to increase the price of our Air Conditioners twice this year, we are evaluating the input price changes before we make a decision prices,” says Gaurav Sah.
According to Satish NS “with the revision of BEE ratings for the AC industry, new SKUs are yet to hit the market, it is important to review competitive pricing and pricing practices.
(Only the headline and picture of this report were reworked by Business Standard staff; the rest of the content was auto-generated from a syndicated feed.)