Bosch may launch AC brand in India; Hitachi label to stay

Kolkata: Bosch Home Comfort India is evaluating introducing Bosch-branded air-conditioners in India, a move that, if finalised, would mark the German major's first entry into the AC segment in Asia, even as it completes integration of the erstwhile Johnson Controls-Hitachi Air Conditioning business.

Managing Director Sanjay Sudhakaran said the plan to roll out Bosch-branded ACs is "on the radar", although no timeline has been finalised. Currently, the company sells products in India under the Hitachi brand.

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"If it happens, it will be the first in Asia, as Bosch ACs are currently present in Europe and some other markets," he told PTI.

He, however, clarified that the Hitachi brand will continue in India under a long-term licensing agreement, even as the company evaluates a dual-brand strategy.

"Hitachi brand will continue as it has a multi-year brand licence. At the same time, the possibility of introducing Bosch-branded ACs is not ruled out," the official said.

The development follows Bosch Group's acquisition of a controlling stake in Hitachi's global air-conditioning joint venture, Johnson Controls-Hitachi Air Conditioning, in 2024, aimed at strengthening its global HVAC presence.

Subsequently, after an open offer, Bosch's holding in the Indian listed entity rose to over 82 per cent, and the company has since been renamed Bosch Home Comfort India Limited.

On the operational front, the official said the company has invested around Rs 500 crore in research and development over the past four years, with India emerging as a key global development hub, particularly at its Kadi facility in Ahmedabad.

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The company is also facing cost pressures from multiple fronts, including freight rate volatility, currency fluctuations and raw material prices, along with the impact of the new 2026 star rating standards, which are about 12 per cent more stringent than current norms.

These factors together are expected to push up costs by at least 12 per cent, the company MD indicated.

He added that part of the cost increase has been passed on to consumers, though not fully.

"There are efforts to pass on part of the cost increases, but it is a continuous exercise given the dynamic environment," he said, adding that the full impact will be reflected in upcoming financial results.

On market positioning, he said the Hitachi brand currently has a high single-digit share in India's AC market, with the company aiming to be among the top three players over time.

"The AC market cannot be decoupled from weather patterns. Much depends on how the summer unfolds," the official noted.

The residential segment contributes around 70 per cent of the company's business, with the rest coming from light commercial applications. While the company plans to expand its commercial presence, residential demand is expected to remain dominant.