Industry Expects 15% Growth Despite Price Hikes

India’s leading room air conditioner (RAC) manufacturers are raising prices by 5–15% between February and April 2026 to offset sustained increases in raw material costs, currency weakness, and supply chain expenses. The hikes come just ahead of the peak summer season, when demand typically surges. Despite higher prices, industry executives expect strong sales momentum this year, aided by forecasts of a hotter summer and improved energy efficiency from new star-rated models. Drivers of Price Hikes - Raw materials: Copper prices have risen sharply. - Currency impact: Weak rupee against the US dollar has inflated import costs. - Freight costs: Global turmoil has raised logistics expenses. - Regulatory changes: New energy-efficiency norms require higher-spec components, adding to costs. Company Announcements - Daikin India: Prices to rise up to 12% from April, model-specific. - Blue Star: Already raised prices by 8–10% in mid-February; old inventory still in market, cushioning immediate impact. -

, , Haier, Mitsubishi Heavy Industries: Similar hikes across product lines. Demand Outlook - Industry expects demand to remain strong despite price increases. - Forecasts of a hot summer in 2026, comparable to record sales in 2024, underpin optimism. - Daikin projects at least 15% industry growth this year. - Dealers pre-stocked inventory ahead of hikes, ensuring short-term availability at older prices. Implications - Consumers face higher upfront costs but benefit from improved energy savings with new star-rated models. - Manufacturers balance margin protection with volume growth, leveraging seasonal demand. - The industry remains structurally positive, with rising urbanisation, higher disposable incomes, and climate trends supporting long-term RAC penetration.