Rainfall Dampens April AC Sales, But Industry Expects Strong Summer Surge

Rainfall Dampens April AC Sales, But Industry Expects Strong Summer Surge

New Delhi: Intermittent rainfall across southern India and scattered thunderstorms in northern and eastern regions have led to slower-than-expected air conditioner (AC) sales this April. Despite the subdued start, industry leaders remain optimistic, anticipating double-digit growth in the coming months as summer temperatures are forecasted to intensify.

Major air conditioner manufacturers including Blue Star, Samsung, and Haier are also set to implement a price hike of up to 5% starting mid-April, citing increased raw material costs and currency volatility as the key reasons.

Weather Plays Spoilsport — But Only Briefly

The room air conditioner (RAC) market, which typically sees a sales spike in the April-June quarter, has been partially impacted by unexpected weather shifts. Southern India, which contributes nearly 23% of the national RAC market, has experienced intermittent rainfall, slowing consumer demand.

“April will be a challenge for sales. However, we expect a strong recovery in May and June,” said Kamal Nandi, Business Head and Executive VP at Godrej Appliances. The company is targeting up to 50% growth in Q1 FY26, riding on rising temperatures and strong consumer demand.

 

Prices Set to Rise Amid Cost Pressure

AC manufacturers are rolling out price increases between 3–5% in April due to the rising cost of raw materials like copper, steel, aluminum, and refrigerant gases, along with fluctuations in the rupee-dollar exchange rate.

• Blue Star has already implemented a 5% hike.

• Haier India plans to raise prices by 4–5% from April 15.

• Samsung is considering a 3% increase.

• Godrej Appliances has no immediate price hike planned but is monitoring commodity market trends closely.

“We were the first to raise prices this season,” said Blue Star MD B Thiagarajan, emphasizing the impact of escalating input costs and currency rates.

Surge in Demand for Heavy-Duty, High-Efficiency ACs

As climate patterns shift, consumer preferences are also evolving. There’s an increasing demand for heavy-duty RAC units with higher energy efficiency and copper condensers that promise better cooling performance and durability.

“Now customers are more focused on cooling capacity than just tonnage,” said N Satish, President of Haier India. These premium units come with a price difference of ₹2,500–₹3,000 compared to regular models.

Tariff Tensions and Global Risks

Industry leaders are also watching the US-China tariff standoff closely, as India still relies heavily on imported AC components like compressors, PCBs, and fan motors from China.

While immediate supply chain impacts are unlikely, executives remain cautious about broader implications on costs and market dynamics.

“My concern is not just about prices but how the global economy and domestic sentiment evolve,” Thiagarajan noted.

Bright Outlook for Q1 Despite Slow April

Despite the mixed start, most manufacturers expect strong sales in the peak summer months of May and June, with overall growth for the April–June quarter expected in the 20–25% range.

With a market size estimated at 15 million units annually, India’s RAC sector remains one of the fastest-growing globally, supported by rising disposable incomes, increasing urbanization, and growing heat concerns.

Conclusion: While April may have started on a cooler note, the room air conditioner industry remains bullish. With heatwaves expected to intensify, coupled with evolving consumer demand for advanced cooling technology, India’s AC market is poised for a strong summer — albeit at a slightly higher price point.