Despite Covid disruptions, AC sales surge in North

The industry grew around 4-6% in the first quarter of the current fiscal despite challenging times as the lockdown was imposed in many parts of the northern region during April and May — Sandeep Rekhi, regional director (north), daikin india

Vijay C Roy

Tribune News Service

Chandigarh, July 27

The lockdown during April-May this year amid the rising Covid cases failed to deter sales of room air-conditioners (ACs) in North. According to manufacturers and dealers, the sale of ACs grew by 4-6% during the first quarter of the current fiscal because of rise in temperature and many people opting for work from home.

In North India, AC is a seasonal product, with over 45% sales being reported during April to June. Any disruption during this period impacts the industry sales.

Overall, the domestic room AC market is estimated at 65-70 lakh units per annum and the northern region contributes around 40% to total sales.

“The industry grew around 4-6% in the first quarter of the current fiscal despite challenging times as the lockdown was imposed in many parts of the region during April and May,” said Sandeep Rekhi, Regional Director (North), Daikin India.

The AC manufacturing companies were expecting a good season given the forecast of a hot summer in parts of the country and the pent-up demand from a year-ago period.

“The surge in Covid cases led to state-specific lockdowns and non-essential stores were shut across markets. Since ACs require installation by a technician, the companies were apprehensive about the sales. However, when the stores got opened, customers rushed to respective dealers and even ordered online,” said Arun Sharma, a sales executive employed with a reputed retail chain.

According to the dealers, the onset of summer was strong, leading to channel filling in March. This was also partly due to expected price hikes in April on account of inflationary pressure in commodity costs.

According to Daikin, with a shift in lifestyle, the need for hygienic and useful living spaces has gone up. Work from home demands smart air-conditioning that technologically supports daily needs besides providing the ability to manage cooling, ventilation and air purification priorities. The demand has gone up and there is a huge potential in the Indian market as the penetration level of air-conditioning in India is still 6-7%.

“Going by the current trend, the industry is poised to register a double-digit growth of 10-12% in the current fiscal,” said Sandeep.