AC sales may touch new record of 14 million units annual sales in 2024: CEAMA

The blistering heatwave this year has skyrocketed the demand for room air-conditioners across the country, expecting a record annual sale of around 14 million units, according to the Consumer Electronics and Appliances Manufacturers Association.

The industry had "record-breaking figures" for sales of air-conditioners in May and expects a surge of 30 to 40 per cent in volume growth in summers alone, Consumer Electronics and Appliances Manufacturers Association (CEAMA) President Sunil Vachani told PTI.

Soaring temperatures and heat waves have now made AC a "quintessential requirement" for households across urban areas, he said.

The Indian AC market is also evolving helped by energy-efficient models that are suitable across income brackets and by investment by the companies in indigenous manufacturing units of components.

"As the market evolves, we expect annual sales volumes to be around 14 million units, highlighting the sector's robust expansion," Vachani said.

The Indian residential AC market is expected to be around 10-11 million units, in which brands like Voltas, LG, Hitachi Johnson, Lloyd, Panasonic, Daikin, and Godrej compete.

The country has witnessed a record temperature this season when the mercury has even crossed a record of 45 degrees Celsius at some places, including Delhi-NCR.

Appliance makers such as Voltas, LG and Haier have reported around two-fold growth in volume sales year-on-year in May, faced challenges from delays in installation and filling up replenishing inventories of hot-selling energy-efficient models.

"The soaring temperatures, the highest that the country has witnessed in decades, have boosted demand for cooling solutions, with May alone seeing record-breaking figures.

We anticipate this momentum to continue, projecting 30-40 per cent growth in volumes for the summer alone," Vachani said.

According to Vachani, the industry is setting up indigenous manufacturing units of components under the PLI scheme, which has also helped to meet this rising demand.

Haier Appliances India President NS Satish said over the years, with the temperature reaching extreme levels, especially in the summers, there has been a consistent demand for efficient, smart and high-quality air conditioning.

"Based on last year's trends and current consumer behaviour, we anticipate a strong demand for cooling appliances this summer.

From March to May, AC sales increased by 103 per cent and Refrigerator sales increased by 30 per cent compared to the same period last year," he said.

The company expects 35-40 per cent growth in the sale of ACs and 30 per cent in refrigerators.

"We anticipate an overall double-digit growth in the cooling appliances category, reaffirming our commitment to superior products and customer satisfaction," he said.