The sizzling temperature and heat wave like conditions over the past few days may have made consumers bear the brunt of heat but air conditioner makers are laughing all the way to the bank with sales picking up considerably this week. The demand has peaked to a record high with temperatures hovering over the 40-degree mark in Visakhapatnam. Going by the recent spurt in sales, air-conditioner dealers are expecting a 10 to 15 per cent growth in sales if the current trend lasts till the end of season.
This trend has brought cheer to the AC market which was staring at a flat growth this summer as a result of the 3 to 5 per cent increase in AC prices this fiscal due to rollback of excise duty extension. While in the ongoing fiscal, the total AC market in India is expected to be around Rs. 7,400 crore, industry estimates, however, peg the overall growth rate to be around 7 per cent.
“The sudden zoom in sales has brought in some relief to an otherwise dull summer for the AC market. During the past week, we have been selling around 30 AC units and 40 air coolers per day, a nearly three times increase than what we have seen in the past two months. We are hoping that the recent demand for AC units may manage to offset the initial slow pick up in sales,” K. Harnadh Raju, Managing Director of Galaxy showroom told
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According to multi-brand stores and company dealers, there has been a marked shift of consumer preference from two-star rated ACs to the three-star AC segment, which is contributing nearly 80 per cent of overall sales in the city. “Also, three and five-star rated ACs save up to 30 per cent of power giving a ‘value for money’ in the long run. Owing to this, the sales of this segment are picking up,” said A. Tarun Kumar of Samsung Plaza.
Also, a substantial number of customers who are buying ACs this summer are going for second or third AC for their homes. “The AC market has moved from being a luxury and comfort product to a necessity today. According to leading manufactures, sales on EMI-based schemes are on a high this year with nearly 60 per cent of sales coming from this segment.
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Dealers are viewing the inverter AC segment as an interesting market. “While the inverter AC market is still growing slowly in Visakhapatnam, we see great potential in this segment. Consumers can save up to 50 per cent on power bills with inverter ACs, which make it an attractive product in the long run,” Tarun Kumar added.