Rising Mercury, Rising Prices: Air Conditioner Industry Faces Heat

Amid rising mercury levels and increased raw material costs, leading room air conditioner makers hike prices by 5-15% ahead of peak summer. Despite higher prices, demand is expected to grow, aided by forecasts of a hotter summer and improved energy-efficient models. GST reforms offset some of the cost increases.

Rising Mercury, Rising Prices: Air Conditioner Industry Faces Heat
  • Country:
  • India

As temperatures climb, leading room air conditioner manufacturers are implementing price increases of 5-15% to counteract rising raw material costs and supply chain expenses. These adjustments are set to roll out between February and April, just before peak summer demand.

High-profile brands like Daikin, Voltas, and Blue Star have announced price hikes across their models, attributing the increases to higher input costs for copper, a weak rupee, new energy-efficiency norms, and soaring freight expenses. Despite these challenges, industry insiders are optimistic about strong sales momentum this year, driven by predictions of a hotter summer and the launch of new star-rated models offering better energy savings.

Daikin India plans a price hike of up to 12% from April, citing unavoidable market pressures. Similarly, Voltas, Blue Star, and LG Electronics have made moderate price adjustments to ensure the continuation of quality and energy-efficient products. The market remains fiercely competitive as companies strive to capture market share following a downturn in 2025.

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