AC Sale: Heat doubled the sales of AC manufacturers, demand for some models is also not being met

Due to the scorching heat, sales of air conditioners have almost doubled in May, while major manufacturers are not able to meet the need for hot-selling AC models. That is, the supply is not being able to meet the demand for ACs. The mercury is hovering above 45 degrees in many places, including the national capital, which has been in the grip of severe heat for the last few days.

The strong demand for air conditioners is making it difficult for manufacturers to supply them to customers. Top brands like Blue Star, LG, Daikin, Panasonic, and Voltas saw strong sales in May, and industry observers predict that overall sales will increase by 30 to 35 percent in 2024 over the previous year.

Home air conditioning sales doubled in May, according to Pradeep Bakshi, MD and CEO of Voltas, and this good trend is predicted to continue for the remainder of the April–June quarter. Speaking to PTI, Bakshi stated that Voltas has experienced strong sales growth as of May 2024, with a remarkable 100% increase over the same month the previous year. The milestone is particularly significant as May has historically been one of the highest contributing months in the AC and cooling products industry.

The Tata Group company is on track to achieve the 2 million unit AC sales mark within the first six months of this calendar year. Similarly, LG Electronics India said it is witnessing growth in the room AC business and has surpassed the records of the last 5 years with a multifold increase in demand. LG Electronics India Senior Vice President Sanjay Chitkara said, "This year many sales records have been made from the South region and now North India. We are expecting at least 100 percent growth in North India.

Similar growth trends are expected in the eastern states as well. He said that the temperature is constantly rising, so the company is excited about AC sales. Blue Star Managing Director B Thyagarajan said that the room AC industry had grown by 40 percent in March this year and it was expected that there would be some fluctuations in the market due to the general elections in May, but it did not happen.

He said that the demand skyrocketed in April. Then we thought it would decrease in May, but it did not happen due to sales from the northern region. He said that the industry sales have increased by 70 percent.

Due to unusually high service calls and higher sales in May, installations are running behind schedule. This is because of the heat, and the industry was not ready for such rapid expansion. Thyagarajan believes that the industry is in a good place right now, with volume growth predicted to reach over 35 percent by 2024.

Daikin India President and Managing Director Kanwaljeet Java said the challenge in the market is how many units you can produce and supply. This is completely a challenge. According to Java, Daikin sales in May were 60 to 70 percent higher than last year and the company expects 35 to 40 percent growth in the first quarter of FY25.

He said sales were slow in May last year due to rains in some parts of the country. Similarly, Panasonic India has also reported good growth for the AC category this summer. Abhishek Verma, Business Head, Air Conditioner Group, Panasonic Life Solutions India, said in the month of May we recorded the highest-ever growth of 52 percent in sales compared to last year. The company has seen the growing popularity of 5-star inverter ACs, which contribute to 55 percent of its online AC sales.

However, Java has also warned about possible price hikes by the industry. The price of copper has increased significantly in the global market and the markers will pass on the impact to consumers. According to Thyagarajan, there is a possibility of early rains in June, which may slow down sales. He said, apart from this, the sugar market has revived, so the prices of raw materials are also rising significantly.