Mumbai: Air conditioner prices in India are expected to increase by 5 to 15 percent as manufacturers try to manage rising production costs. The price hikes are being introduced between February and April, just before the summer season when demand for cooling appliances usually rises.
Several major companies such as Daikin, Voltas, Blue Star, LG Electronics, Haier and Mitsubishi Heavy Industries have announced price increases across several models.
Industry executives said the hikes are mainly due to higher raw material costs, a weak Indian rupee, new energy efficiency rules, and increased freight and import expenses.
Rising Raw Material Costs Impact Industry
One of the biggest reasons for the price increase is the rising cost of copper, which is an important material used in air conditioners. Manufacturers are also facing higher costs due to the weakening of the Indian rupee against the US dollar, making imported components more expensive.
According to Kanwaljeet Jawa, Daikin plans to increase AC prices by up to 12 percent from April, depending on the model.
He said the new energy efficiency rules have made products more advanced, but they have also increased production costs.
Companies Already Implementing Price Changes
Some companies have already started increasing prices. Blue Star has already raised prices by 8 to 10 percent in February.
However, consumers may not immediately feel the impact because many retailers are still selling old stock purchased before the price increase.
Similarly, Voltas has also announced price hikes between 5 and 15 percent during the year.
Energy-Efficient Models Introduced
The price changes are also linked to new efficiency rules introduced by the Bureau of Energy Efficiency from January 1.
Under the revised star rating system, new 5-star air conditioners are about 10 percent more energy efficient than earlier models.
Officials from LG said the company increased prices by around 7 percent for 3-star models and 9–10 percent for 5-star models. Despite the increase, these models can help consumers save electricity costs over time.
Industry Expects Strong Sales
The Indian room air conditioner market is estimated at around 13.5 million units annually.
Industry leaders expect strong demand in 2026, especially if the summer season turns hotter, similar to 2024 when the industry saw record sales.
