Daijiworld Media Network – New Delhi

New Delhi, Mar 8: Leading air conditioner manufacturers in India have begun increasing prices of room air conditioners by 5 to 15 per cent as companies seek to offset rising raw material costs and supply chain expenses ahead of the summer season.

Major brands including Daikin, Voltas, Blue Star, LG Electronics, Haier and Mitsubishi Heavy Industries have announced price hikes across several models between February and April.

Industry players said the increase is mainly driven by higher prices of key raw materials such as copper and aluminium, the weakening of the Indian rupee against the US dollar, new energy-efficiency norms and increased freight costs.

Chairman and Managing Director of Daikin India, Kanwaljeet Jawa, said the company will increase prices by up to 12 per cent from April, depending on the model.

He noted that the introduction of new energy efficiency standards and rising input costs have made the hike unavoidable. “Prices of materials such as copper have gone up, the US dollar is at an all-time high against the rupee, and freight costs have also increased due to global uncertainties,” he said.

Despite the price increase, industry leaders expect strong demand this year due to forecasts of a hotter summer. Jawa said the room air conditioner industry could witness around 15 per cent growth in 2026, potentially matching or exceeding the record sales seen in 2024.

Managing Director of Blue Star, B Thiagarajan, said the company had already implemented a price increase of 8–10 per cent in mid-February. However, the impact has not been immediately visible in the market as dealers had stocked up on inventory before the price hike.

Similarly, market leader Voltas has announced a 5–15 per cent increase in its air conditioner prices. Managing Director Mukundan Menon said the decision was necessary to manage rising input costs while continuing to offer energy-efficient products.

At LG Electronics India, prices of 3-star AC models have increased by about 7 per cent, while 5-star models have seen hikes of around 9–10 per cent, according to Director and Co-Chief Sales and Marketing Officer Sanjay Chitkara. He added that the new energy-efficient models offer roughly 11 per cent better efficiency, which could help consumers save on electricity bills in the long term.

Meanwhile, Haier India has increased prices by 5 per cent for 3-star models and about 8 per cent for 5-star models, with the revised pricing effective from March.

Mitsubishi Heavy Industries has also raised prices by around 5 per cent, with company officials attributing the hike largely to the weakening of the rupee against the US dollar.

Industry experts say the revised energy efficiency standards introduced by the Bureau of Energy Efficiency (BEE) from January 1 have also contributed to higher costs. Under the updated norms, new 5-star air conditioners are about 10 per cent more energy efficient than previous models.

The Indian room air conditioner market is estimated at around 13.5 million units annually, with major brands competing for market share after the industry experienced weaker sales in 2025 due to unseasonal rainfall and other factors. However, companies expect demand to rebound strongly this year as temperatures begin to rise across several parts of the country.