Room air-conditioner makers have begun raising prices by 5–15 per cent between February and April as higher raw material costs, a weaker rupee and new energy-efficiency norms push up manufacturing expenses ahead of the peak summer season.
Leading players, including Daikin, Voltas, Blue Star, LG, Haier and Mitsubishi Heavy Industries, have announced price increases across models, citing higher costs of key raw materials such as copper, rising freight charges and the impact of new energy-efficiency standards.
Industry executives said the adjustments are necessary despite expectations of strong demand this year, supported by forecasts of a hotter summer and improved efficiency in newly star-rated models.
Daikin India will raise prices by up to 12 per cent from April, depending on the model, its Chairman and Managing Director Kanwaljeet Jawa told PTI.
"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," he said.
"There is no escape route for that, and every player in the industry has taken a price increase," Jawa added.
Asked whether the hike would affect demand, he said: "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."
Blue Star Managing Director B Thiagarajan said the company had already raised prices by 8–10 per cent in mid-February, though older inventory is still being sold in the market.
"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 would take some time to reach the market.
The room air-conditioner industry saw weaker sales in 2025 due to unseasonal rainfall and other factors, following strong growth in 2024 when several parts of the country experienced intense heatwaves.
Experts expect intense competition in the segment this year as manufacturers seek to regain market share after the negative growth recorded in 2025.
Market leader Voltas is also implementing a 5–15 per cent price hike for room air-conditioners.
"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 also raised prices following the new energy norms.
"We have increased about 7 per cent for 3-star models and around 9-10 per cent for 5-star models," said Sanjay Chitkara, Director and Co-Chief Sales and Marketing Officer.
"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.
A revised star-rating system introduced by the Bureau of Energy Efficiency (BEE) came into effect on January 1, under which a new 5-star room air-conditioner is around 10 per cent more energy efficient.
Haier India has increased prices between 5 and 8 per cent, according to 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 increase will take effect from March.
On demand, Satish said sales had begun picking up with rising temperatures and could surpass 2024 levels this year.
Mitsubishi Heavy Industries has also raised prices of its ACs by about 5 per cent, said its Director Pradeep Bakshi, citing the weakening of the Indian rupee against the US dollar.
India’s room air-conditioner market is estimated at around 13.5 million units, with companies such as Voltas, LG, Daikin, Blue Star, Hitachi, Panasonic and Lloyd competing for market share.