Unseasonal Weather and Price Hikes Wreak Havoc on Air-Conditioner Industry Expectations

Air-conditioner manufacturers face challenges from unseasonal weather and rising costs of materials, affecting the expected demand surge. Price hikes driven by increased raw material costs and geopolitical tensions add to industry concerns, raising fears of disrupted production amid LPG supply constraints. Despite uncertainties, optimism remains for April's warmer temperatures.

Unseasonal Weather and Price Hikes Wreak Havoc on Air-Conditioner Industry Expectations
  • Country:
  • India

The air-conditioner industry is facing a conundrum as unexpected weather patterns disrupt the anticipated demand for cooling products. Western disturbances have delivered unseasonal rainfall across large regions, impacting early summer sales expectations.

Compounding these weather challenges are recent hikes in prices caused by geopolitical tensions in West Asia, affecting raw material costs like plastics and the supply of LPG gas crucial for production. This has prompted industry leaders to announce price increases of up to 10-12% for large appliances such as washing machines.

Nevertheless, industry executives are cautiously optimistic, predicting rising temperatures in April, which could normalize the situation. Despite uncertainties in the market, brands remain competitive, vying for growth despite the disruptions in 2025.

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