Rising Demand and Price Hikes: The Dynamics of India's Room Air Conditioner Market

Despite intermittent weather patterns slowing sales, India's room air conditioner market anticipates double-digit growth due to rising temperatures. Companies, including Blue Star, Samsung, and Haier, are implementing price hikes to offset raw material and currency cost fluctuations. The market remains heavily reliant on imports amidst ongoing tariff tensions.

The Indian room air conditioner market is experiencing a slowdown in sales due to intermittent rainfall in southern India and recent thunderstorms in northern and eastern regions. Despite this, industry experts forecast double-digit growth for the sector, driven by predictions of an intense summer and heightened demand for cooling solutions.

Major RAC manufacturers, including Blue Star, Samsung, and Haier, are responding to increasing raw material and currency exchange costs by raising prices by up to 5%. This move comes as the industry grapples with macroeconomic volatility and a dependence on imported components, particularly from China.

Industry leaders remain optimistic about the upcoming sales season, with expectations for significant growth due to rising temperatures and increased consumer demand for energy-efficient, heavy-duty air conditioning units. The ongoing tariff standoff between the US and China adds a layer of complexity to the market's outlook.

(With inputs from agencies.)