AC Sales Hit A Record High Of 17.5 Lakh Units In April

AC sales hit a record high of 17.5 lakh units in April; Expected to reach 90 lakh in 2022.

The heat and heatwave have increased the temperature of the AC market. About 17.5 lakh ACs have been sold in April.

This is the highest figure for April so far. The Consumer Electronics and Appliances Manufacturers Association (CEMA) gave this information on Tuesday.

2021 saw a drop in sales due to the pandemic. This year saw an increase of 30 to 35 percent as compared to April 2019. This shows that the market has come out of the pressure of the pandemic.

Around 90 lakh ACs have been estimated to be sold this year. Along with this increasing demand, there may also be some challenges on the supply front.

Eric Braganza, President of CEAMA, said that there are problems in the supply of components such as compressors and controllers. These components mainly come from China.

For this reason, companies are not able to meet the demand for some models. Especially with low energy consumption 5-star ACs have low output.

Braganza has also expressed apprehensions that prices will increase.

He said that the consumer appliance/durable goods industry has increased the prices due to an increase in raw material costs and transportation costs due to costlier petroleum.

In the coming months also, an increase of two to four percent can be seen in the price.

Braganza informed that at the industry level, the estimated sales of residential ACs (Air Conditioners) in the month of April 2022 is around 17.5 lakh units.

This sale is double as compared to April 2021 and 30-35 percent as compared to April 2019 figures. He said that this shows a startling development compared to the pre-pandemic level.

Braganza said the development could be attributed to the opening of markets along with the severe heatwave across the country.

Going by its trend, the demand for air conditioners will remain good in May and June also.

On the expectations for 2022, he said the AC market this year is expected to be in the range of 85 lakh to 90 lakh units depending on the scorching heat and the sales trend in the first four months.

This will be the highest ever.

He added that the manufacturers may not be in a position to supply the full range of models, especially the energy efficient 5 Star range to meet the market demand.

In the last 18-20 months, the consumer products and durables industry has witnessed a price increase of up to 15 percent, he added.

With the continued rise in raw material, crude oil, and global freight rates in the coming months, many manufacturers will increase their pricing in the range of 2-4 percent.

Manufacturers such as Voltas, Panasonic, Hitachi, LG, and Haier posted record sales in April.

Pradeep Bakshi, managing director and CEO of Tata Group firm Voltas, said this year saw an ‘unprecedented growth’ in AC sales and nearly touched the volume level of April 2019, one of the hottest summers of the decade.

Bakshi said that the AC industry in the month of April 2022 has witnessed phenomenal growth as compared to last year due to very hot summers and a low base of 2021.

We’ve seen high triple-digit growth across the region.

Similarly, Panasonic India said it has seen record demand air conditioners and sold over one lakh units during the month.

Gaurav Sah, Business Head, Air Conditioners Group Panasonic India said that we are witnessing record demand air conditioners.

Panasonic India sold over one lakh units this April, an increase of 83 percent over the previous April (2021) and a growth of 67 percent over April 2019.

We attribute this phenomenon to the increase in demand and the onset of the summer season.

Johnson Controls-Hitachi Air Conditioning India which sells residential ACs under the Hitachi brand said its sales had nearly doubled in April from last year.

The company is optimistic about achieving a record sales of Rs 1,500 crore during the peak season in the segment.