Companies have decided to increase room air-conditioner prices by 5-15 percent. This is because manufacturers are facing higher costs for copper, aluminum, and freight. This price adjustment is taking place between February and April, just before the peak summer demand. Companies like Daikin, Voltas, and Blue Star are implementing these increases. Despite the increase, sales are expected to increase due to the forecast of a hot summer.

As the heat intensifies, manufacturers of large room air conditioners are raising prices in the range of 5-15 percent to offset the steady rise in raw material costs and supply chain expenses. These increases, occurring between February and April, are just ahead of the peak summer season when demand typically surges. Major companies like Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi Heavy Industries have announced price hikes on their models, reflecting higher input costs for essential raw materials like copper, a weakening rupee, new energy-efficiency norms, and increased freight costs. Industry officials said that while adjustments are necessary, they expect a healthy sales growth this year, aided by forecasts of a warmer summer and improved energy savings from new star-rated models.

Daikin India increased by 12 percent

Daikin India Chairman and Managing Director Kanwaljeet Jawa said the company is increasing prices by up to 12% from April, and the price increase will depend on the model. He added that new energy norms have come into effect, making products more efficient. Additionally, prices of materials like copper have risen; the US dollar (against the Indian rupee) is at an all-time high. Furthermore, global turmoil has created significant uncertainties, and freight costs have also risen, making imports (of components) more expensive.

So there's no other option. Java further said that there's no way to avoid this, and every player in the industry has increased prices. When asked if this increase will affect room air conditioner sales this year, he said, "We expect a very hot summer in 2026. It should at least reach the level of 2024, when the industry saw record sales. I think there should be at least 15 percent growth this year."

Blue Star also increased the price

Blue Star Managing Director B. Thiagarajan said the company had already increased prices by 8-10% in mid-February. However, inventory at the old prices is still available, so there isn't much difference in the market. He said dealers had already picked up stock because prices were about to rise. They bought early, so they will sell the old stock. He further said that the new batch at higher prices will take some time to reach the market. 2025 was not a good year for the room air conditioner industry, as unseasonal rains and other factors impacted sales. The industry had seen strong growth the year before, in 2024, when many parts of the country experienced intense heat.

Voltas will also increase the price

According to experts, the Indian room air conditioner segment will witness intense competition this year, with manufacturers vying for market share after experiencing negative growth in 2025. Tata Group firm and market leader Voltas is also set to increase the prices of its room air conditioners by 5-15 percent, passing on the increased cost of raw materials and other components to consumers. Mukundan Menon, Managing Director of Voltas, said, "Over the past few months, input costs have been rising due to rising copper prices, a weakening rupee, and the implementation of new energy-efficiency standards. To ensure we continue to provide our customers with high-quality, energy-efficient air conditioners, we will make small and carefully calibrated price adjustments in the range of 5-15 percent throughout the year."

LG Electronics India also made ACs expensive.

Similarly, in line with the new energy norms, LG Electronics India has also increased prices by “around 7% for 3-star models and around 9-10% for 5-star models. Sanjay Chitkara, Director and Co-Chief Sales and Marketing Officer of the company, said that these energy-efficient ACs offer around 11% better efficiency, helping customers save on electricity bills over time, even though input costs like copper and aluminium remain significantly higher than last year. Also, the reduction in GST from 28% to 18% has largely offset this extra cost, making it easier for customers to switch to more energy-efficient ACs.

Higher India also increased

This year, the Bureau of Energy Efficiency's (BEE) new revised star rating came into effect on January 1. Now, a new 5-star room air conditioner is 10 percent more energy efficient under the newly revised BEE norms. N.S. Satish, President of Haier India, said that it has also increased prices by 5 to 8 percent. "We are increasing prices by 5 percent for 3-star models and about 8 percent for 5-star products," he said, adding that this increase will be effective from March. Regarding sales this year, Satish said that they have started picking up since last week as temperatures have started rising. He also expects better sales this year than 2024.

Mitsubishi Heavy Industries also increased prices

Mitsubishi Heavy Industries, a global leader in advanced air-conditioning solutions, has also increased the prices of its ACs by 5 percent, said its director, Pradeep Bakshi. According to Bakshi, the price increase is due to the weakening of the Indian rupee against the US dollar. The room air conditioner market is estimated at around 13.5 million units, with players such as Voltas, LG, Daikin, Blue Star, Hitachi, Panasonic, and Lloyd competing.

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