Indian air conditioner manufacturers are preparing to take their products to the European market from 2027, aiming to tap into growing demand for cooling solutions driven by rising temperatures and climate change.

However, the expansion won't be easy. Indian brands will face stiff competition from established Chinese and South Korean manufacturers, which currently dominate Europe's AC market and reportedly enjoy production costs that are 15–18% lower than those of Indian companies.

Europe Launch Planned for 2027

According to industry officials, Indian companies have been evaluating the European market for over a year. While rising temperatures have created new opportunities, strict certification requirements mean manufacturers cannot enter the market immediately.

Godrej Enterprises Group's Appliances Business Head, Kamal Nandi, said the company has been studying the European market since last year and is planning to launch its products by the summer of 2027, once the necessary certifications are completed.

Demand for Cooling Solutions Is Rising

Industry sources say inquiries and demand for cooling equipment in Europe have increased significantly, encouraging Indian manufacturers to explore exports.

The Indian government has also identified the air conditioning sector as a key manufacturing opportunity, similar to the smartphone industry. The aim is to strengthen exports and position India as a global manufacturing hub for cooling appliances.

Government Push for AC Exports

The government has encouraged manufacturers to expand exports, with air conditioners remaining the only white goods category covered under the Production Linked Incentive (PLI) Scheme.

Several companies are now working towards expanding their international presence:

• Havells plans to export air conditioners and fans to Europe through distributor networks.
• Contract manufacturers such as Amber Enterprises, which supplies brands including LG, Daikin, Samsung, and Blue Star, are also exploring export opportunities.
• Global brands like LG, Daikin, and Haier are expanding export-focused manufacturing capacity in India to serve overseas markets.

Products Will Need European Adaptation

Manufacturers acknowledge that products designed for India will require modifications before they can be sold in Europe.

One major difference is that heat pump air conditioners, which provide both heating and cooling, account for nearly 80% of residential AC sales in Europe. While similar systems are already available in colder Indian regions such as Jammu & Kashmir and parts of North India, companies will need to adapt their products to meet European consumer preferences and regulations.

Another challenge is installation. Professional installation costs in Europe are relatively high, and many older or heritage buildings have strict rules that prohibit the installation of conventional outdoor split AC units.

A New Opportunity for Indian Manufacturers

Despite these challenges, the European market represents a significant growth opportunity for Indian AC makers. If companies successfully meet certification standards and tailor their products to local requirements, Made-in-India air conditioners could begin cooling European homes from 2027, marking another milestone in India's growing manufacturing and export ambitions.