AC and fridge demand surge by 50% due to soaring temp, despite price rise
NewDelhi: The country is experiencing record heat this year since March. The mercury has soared above 40 degrees Celsius in many parts of the country; the demand for ACs has reached to a new record high. It is believed that in March alone, AC sales crossed 15 lakh units. The direct benefit of the scorching heat is being seen on the market of cooling products. In the last one month, sales of cooling products like ACs, coolers and fridges have registered a jump of nearly 50% on a yearly basis.
After two year of Covid pandemic and sluggish demand due to restrictions. This year strong sales in the current month and May as well, the cooling products business is expected to grow well above pre-COVID levels. Generally, sales of ACs, coolers and fridges increase with the increase in heat in April. But this year, due to the scorching heat from a month ago, there was a jump in their sales. Last month the sales of coolers and ACs increased by 40-50% despite the price rise due to the rising cost of raw materials.
The last two years of the summer season were spent in lockdown
Actually, due to Kovid, the last two years of the summer season passed in lockdown. Due to this, the pent-up demand for cooling products is rising. Gaurav Shah, Business Head, Panasonic India, said that there has been a record jump in air conditioner sales in March due to pent-up demand. Sales in value terms have increased by about 25% as compared to 2021. We expect strong sales across sectors this year. AC sales are expected to grow by 30%.
Price increased, but demand neutralized
Manufacturing costs have increased due to the rising prices of metals such as steel and copper. Satish NS, President, Haier Appliances India said that we have had to increase the prices of refrigerators, washing machines and ACs by 5 to 6%. Despite this, good growth in sales is expected this year.
Customers ready to spend
Satish NS, President, Haier Appliances, has been witnessing strong consumer demand since March this year. People are ready to spend on cooling products. We expect 40-50% growth in air conditioner sales. Sales grew 50% year-on-year in March itself.
Stocks of companies also rose
Due to the increase in demand for cooling products, the shares of companies related to their manufacturing have also gone up. In the last one month, shares of companies like Voltas, Blue Star, Amber Enterprises, Symphony, Johnson Controls, Sharp India have registered a rise of 5 to 25 percent.