Erratic weather clouds AC sales outlook

New Delhi: Air-conditioner(AC) manufacturers are treading cautiously as unseasonal rainfall across parts of India threatens to disrupt early summer demand, a key sales driver for the industry.

March typically marks the start of strong demand for cooling appliances, but erratic weather has created uncertainty. Industry executives, however, remain hopeful of a pickup as temperatures are expected to rise in April. Kamal Nandi of Godrej Enterprises said it is too early to assess the full impact, adding that temperatures in north India are likely to increase soon and demand may normalise next month. The industry is also grappling with rising input costs due to geopolitical tensions in West Asia. Prices of key raw materials such as plastics have surged, while higher freight costs have added to the pressure. Manufacturers are preparing for a second round of price hikes, with AC prices expected to rise by 5–10 per cent from April. Rising plastic costs are also pushing up prices of other appliances like washing machines by 10–12 per cent, which may lead consumers to opt for lower-priced models.