PTIThe CEAMA President also said there could be a price hike of around 4-5% to protect margins as input costs have increased significantly.
The CEAMA President also said there could be a price hike of around 4-5% to protect margins as input costs have increased significantly.
Due to the early summer and intense heatwave, home air conditioner manufacturers are looking forward to record sales of about 90,000 units this year, the Consumer Electronics and Appliances Manufacturers Association said on Tuesday.
Back in April, the industry has seen sales of about 17.5 lakh units, also an all-time high for the month.
However, the availability of certain products could be an issue over the next few months as manufacturers may not be able to provide their full range of models to meet market demand, particularly the energy efficient 5-star range due to high supply and demand constraints in components like controllers and compressors, said Eric Braganza, president of CEAMA (Consumer Electronics and Appliances Manufacturers Association).
“At the industry level, the estimated sales of household air conditioners (air conditioners) in the month of April 2022 are approximately 1.75 million units. Sales are double those of April 2021 and 30-35% above April 2019 numbers,” Mr. Braganza told PTI.
This shows “amazing growth” compared to pre-pandemic levels, he added.
“The growth is due to the opening of markets along with the sweltering heatwave across the country, and the trend is that demand for air conditioners will also be good in May and June,” Braganza added.
Speaking on expectations for 2022, he said: “Based on the harsh summer and sales trends over the first four months, the AC market is expected to be between 8.5 million and 9 million units this year. It will be the highest ever.” However, Mr. Braganza cautioned that availability of certain products could be an issue over the next few months and the industry could experience shortages as there are supply issues of controls and compressors, particularly from China, amid demand after more energy efficient ACs is very high.
“…Manufacturers may not be able to offer their full range of models to meet market demand, particularly the energy-efficient 5-star range,” he said.
Also, the CEAMA President said there could be a price hike of around 4-5% to protect margins as input costs have increased significantly.
“In the last 18 to 20 months, the consumer goods/durable goods industry has seen price increases of up to 15 percent. With the continued rise in commodity, crude oil and global freight rates, many manufacturers will increase their prices in the range of 2-4 percent in the coming months,” he said.
Manufacturers such as Voltas, Panasonic, Hitachi, LG and Haier posted record sales in April.
Voltas, a Tata Group company that is an industry leader, experienced “unprecedented growth” and almost matched the volume level of April 2019, which was also one of the hottest summers of the decade, said its managing director and CEO Pradeep Bakshi.
“In the month of April 2022, due to a very strong summer and a low base in 2021, the AC industry has seen unprecedented growth from last year. We’ve seen high triple-digit growth across the industry,” Bakshi said.
Similarly, Panasonic India said it had experienced “record demand” for air conditioners, selling over 1,000 units during the month.
“We are seeing record demand for air conditioning. This April, Panasonic India sold over 1,00,000 units, an 83% growth from last April (2021) and a 67% growth from April 2019. We would attribute this phenomenal growth to pent-up demand and the early start of the summer season,” said Gaurav Sah, Business Head of Air Conditioners Group at Panasonic India.
Johnson Controls-Hitachi Air Conditioning India, which sells home air conditioners under the Hitachi brand, said its April sales nearly more than doubled from last year and the company is “optimistic” about record sales during the year of 1,500 crore peak season in the segment.
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