Summary:

The Indian room air conditioner (RAC) market is forecast to develop rapidly, with year-on-year sales increasing by 20-25% to 12-12.5 million units in FY 2024-25. Rising temperatures, urbanization, increasing disposable incomes, and growing demand for multiple units per home all contribute to this trend.

Mr. Srikumar Krishnamurthy of ICRA reports that the domestic RAC sector exceeded pre-COVID peak sales in the fiscal year 2023-24. The number of heatwave days has climbed over the last three decades, with OEMs experiencing year-on-year increases of 40-50% last summer. ICRA predicts growth of 10-12% in 2025-26. Domestic home RAC capacity is expected to grow by more than 40% in the next three years. ICRA reported a 53% year-on-year revenue gain in Q1 and expects to expand by 25% this fiscal year, despite competition and variations in input costs.

Source: IBEF 

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