Rising temperature brings cheer for AC makers as sales grow
The sweltering heat may be making life difficult for others, but airconditioner manufacturers are quietly smiling with sales growing at double-digit rate in the last couple of months.india Updated: Jul 01, 2012 20:36 IST
The sweltering heat may be making life difficult for others, but airconditioner manufacturers are quietly smiling with sales growing at double-digit rate in the last couple of months.
AC makers like LG, Haier and Samsung said the extreme heat in the Northern and Eastern regions have led to brisk sales of their products.
“In the April-June quarter, our sales grew by 20%, mostly driven by the North and East markets, and a bit from South,” Saurabh Baisakhia, business sales head (air conditioners), LG India, told PTI. “During the period, market has done much better in the North and East.”
Had it not been for the pick up in sales in May and June, it would have been yet another disappointing year, he added.
Last year, AC sales were affected due to delayed summer.
Baisakhia, however, said the industry-wide growth is likely to remain flat during this year.
Another AC maker Haier said the company has witnessed double-digit growth so far in this year and is expecting to out-perform the industry.
“In the first half of this year, our AC and refrigerator sales have increased by about 13-15%. We are expecting our overall sales growth for the entire year to be more than the industry rate,” said Eric Braganza, president, Haier Appliances (India).
Expressing similar sentiments, Samsung India said its sales have increased during the last three months.
“The AC market has picked up in quarter 2 over quarter 1 this year,” said Mahesh Krishnan, vice-president (home appliances), Samsung India .
Companies such Panasonic and Haier had stated recently that they would raise prices of their products by up to 5%, mainly due to the severe impact of depreciation of rupee.