AC makers raise prices by 5–15% ahead of summer as input costs climb

New Delhi: With temperatures beginning to rise across the country, leading room air-conditioner manufacturers are increasing prices by 5–15% to offset higher raw material and supply chain costs ahead of the peak summer season.

The hikes, being rolled out between February and April, come just as demand typically begins to surge. Major brands including Daikin, Voltas, Blue Star, LG, Haier and Mitsubishi Heavy Industries have announced price increases across several models.

Industry executives said the price revisions are being driven by higher costs of key inputs such as copper and aluminium, a weakening rupee, rising freight expenses, and the implementation of new energy-efficiency norms.

Daikin India said it plans to raise prices by up to 12% from April, depending on the model.

"The new energy norms have come, which have made products more efficient. Also, prices of materials such as copper have gone up; the US dollar is at an all-time high (in comparison to the Indian rupee). Besides, there are a lot of uncertainties due to global turmoil, and freight costs have also gone up, making imports (of components) costlier. So there is no alternative," Daikin India Chairman and Managing Director Kanwaljeet Jawa told PTI.

"There is no escape route for that, and every player in the industry has taken a price increase," he added.

Despite the price hikes, companies remain optimistic about sales this year as forecasts point to a hotter summer.

"We are expecting a hot summer in 2026. At least it should touch the levels of 2024, when the industry had record sales. I think this year it should see at least a 15 per cent growth," Jawa said.

Blue Star has already implemented an 8–10% price hike in mid-February, although its Managing Director B Thiagarajan said the impact in the market is yet to be fully visible.

"Dealers lifted stocks earlier as a price increase was going to happen. They bought in early, so they will be selling the old stock," he said, adding that a new batch priced higher will take time to reach the market.

The industry is hoping for a rebound after a weak 2025, when unseasonal rainfall and other factors dampened demand. In contrast, 2024 saw record sales as intense heatwaves across many parts of the country boosted purchases.

Market leader Voltas, part of the Tata group, is also planning a 5–15% price increase during the year.

"Over the past few months, input costs have been steadily increasing, driven by rising copper prices, a weakening rupee, and the implementation of new energy-efficiency standards. To ensure we continue delivering high-quality, energy-efficient air conditioners to our customers, we will be undertaking a modest and carefully calibrated price adjustment in the range of 5-15 per cent during the year," Voltas Managing Director Mukundan Menon said.

LG Electronics India has raised prices by around 7% for 3-star models and about 9–10% for 5-star models, according to its Director and Co-Chief Sales & Marketing Officer Sanjay Chitkara.

"These energy-efficient ACs deliver roughly 11 per cent better efficiency, which helps consumers save on electricity bills over time, even as input costs like copper and aluminium remain much higher than last year. At the same time, the GST reduction from 28 per cent to 18 per cent has largely offset this additional cost, making the transition to more energy-efficient ACs easier for consumers," he said.

The changes coincide with the revised star-rating norms introduced by the Bureau of Energy Efficiency (BEE), which came into effect on January 1. Under the new standards, a 5-star room air-conditioner is about 10% more energy efficient than earlier.

Haier India has also increased prices by 5–8%, said its President N S Satish.

"We are increasing 5 per cent for 3-star models and around 8 per cent for 5-star products," he said, adding that the revision will take effect from March.

Satish said sales have already begun picking up as temperatures start rising and expects the market to perform better than 2024.

Meanwhile, Mitsubishi Heavy Industries has implemented a 5% price hike, with Director Pradeep Bakshi citing the weakening rupee against the US dollar as a key factor.

India’s room air-conditioner market is estimated at around 13.5 million units annually, with companies such as Voltas, LG, Daikin, Blue Star, Hitachi, Panasonic and Lloyd competing for market share. After a sluggish 2025, manufacturers expect intense competition this year as brands look to regain momentum during what could be another hot summer.