Industry Update Back
Room air conditioners: CY18 to be another year of strong industry growth

Increasing disposable income, cheap financing and lower running costs for ACs are expected to further drive demand for air conditioners in India, in our view. We took a deep dive into the room AC market in urban India and discovered that AC penetration remains very low at 10%. There are 9.1m/24m households   with washing machines/refrigerators but no ACs.   Thus, as more households install ACs going forward,  demand could reach 18-48m (which is equal to 3-8 years of annual industry AC sales) and penetration levels could increase significantly from current low levels of 10% in urban India