In New Delhi, March 8 As temperatures rise, leading air conditioner manufacturers are increasing prices by 5-15 percent to offset rising raw material costs and supply chain expenses.
These price increases, which began in February and will continue through April, coincide with the peak summer season, when demand typically surges.
Major players, including Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi Heavy Industries, have announced price increases across their models, passing on higher costs for key raw materials such as copper, a weaker rupee, new energy efficiency standards, and increased freight costs.
Industry executives say that while these adjustments are necessary, they expect strong sales this year, fueled by forecasts of a hotter summer and improved energy savings from new star-rated models.
Daikin India will increase prices by up to 12 percent from April, according to Kanwaljeet Jawa, Chairman and Managing Director of Daikin India.
"New energy efficiency standards have made products more efficient. Also, the prices of materials like copper have increased, and the Indian rupee is currently at a low level compared to the US dollar. In addition, there are many uncertainties due to global events, and freight costs have also increased, making imports more expensive. Therefore, there is no alternative," he said.
There is no way to avoid these changes, and every company in the industry has increased prices, Jawa added.
When asked if these price increases would impact the sales of room air conditioners this year, he said, "We expect a hot summer in 2026. At least it should reach the levels of 2024, when the industry had record sales. I think sales will increase by at least 15 percent this year."
B Thiagarajan, Managing Director of Blue Star, said the company had already increased prices by 8-10 percent in February. However, existing stock remains in the market, so there is not much difference in prices.
"Dealers had already stocked up, anticipating a price increase. They bought in early, so they will be selling the existing stock," he said, adding that new stock with higher prices will take time to reach the market.
Sales of room air conditioners were impacted in 2025 due to unseasonal rainfall and other factors. The industry had experienced strong growth in 2024, with several parts of the country experiencing intense heatwaves.
Experts predict that there will be stiff competition in the Indian room air conditioner market this year, as manufacturers will compete for market share after experiencing negative growth in 2025.
Voltas, a leading company in the market, is also increasing prices of its room air conditioners by 5-15 percent, passing on the increased costs of raw materials and other factors to consumers.
Mukundan Menon, Managing Director of Voltas, said, "Over the past few months, input costs have been steadily increasing due to rising copper prices, a weakening rupee, and the implementation of new energy efficiency standards. To ensure we continue delivering high-quality, energy-efficient air conditioners to our customers, we will be undertaking a modest and carefully calibrated price adjustment in the range of 5-15 percent during the year."
Similarly, LG Electronics India has also "increased prices by about 7 percent for 3-star models and around 9-10 percent for 5-star models," said Sanjay Chitkara, Director and Co-Chief Sales & Marketing officer.
"These energy-efficient ACs deliver roughly 11 percent better efficiency, which helps consumers save on electricity bills over time, even as input costs like copper and aluminum remain much higher than last year. At the same time, the GST reduction from 28 percent to 18 percent has largely offset this additional cost, making the transition to more energy-efficient ACs easier for consumers," he said.
The new revised star rating from the Bureau of Energy Efficiency (BEE) became effective on January 1. Now, a new 5-star room air conditioner under the new revised BEE norms is 10 percent more energy efficient.
Haier India has also increased prices between 5 and 8 percent, said N S Satish, President.
"We are increasing prices by 5 percent for 3-star models and around 8 percent for 5-star products," he said, adding that this increase will be effective from March onwards.
Satish said that sales have started picking up from last week as the temperature has started rising. He also expects sales to be better than 2024 this year.
Mitsubishi Heavy Industries, a global leader in advanced air-conditioning solutions, also increased the prices of its AC by 5 percent, said Pradeep Bakshi, Director. According to Bakshi, the prices are going up due to the weakening of the Indian rupee against the US dollar.
The room air conditioner market is estimated to be around 13.5 million units, in which players, including Voltas, LG, Daikin, BlueStar, Hitachi, Panasonic, and Lloyd, etc compete.
