Recent reports indicate that India is experiencing extreme drought conditions as summer temperatures in regions of the Country average above 45 degrees Celsius. In response to extreme climatic changes, investment in thermal comfort solutions like air conditioners has increased drastically. This came as a surprise as the consumer market as a whole is currently facing a downturn.
High Sales Figures During A Recession
Due to growing inflation in the country, consumer spending on non-essential items dropped which adversely affected the automotive industry and other premium goods. Over the past few months, major companies like voltas, LG and Daikin have reported record high revenue which can be attributed to an increased demand for air conditioners because these products have shifted from being a luxury to a basic necessity in the face of heat waves scorching the country.
An increase in the frequency of climatic catastrophes combined with a growing middle class appear to be the primary factors behind the increased demand for air conditioning units. In addition, with the shift to remote working, most households are purchasing cooling appliances to make their home office as comfortable as possible.
Meeting Demand is a Struggle for Manufacturers
There was a sudden increase in demand which has now put manufacturers into some supply chain problems. Many brands have noted that the demand for their products has surpassed their expectations, leading to more expensive products and longer waiting periods. While some companies are increasing their production, other businesses are bringing in more units to satisfy the needs of the consumers.
In addition, there has been an increase in the demand for inverter based ACs and other energy saving cooling appliances as consumers seek air conditioners that can cool the premises without increasing the electricity bills substantially. To add on, numerous state governments and electricity distributors offer subsidized rates and rebates for the energy efficient models, which also impacts sales positively.
Boost in Sales for Retail and Online Shops
Amazon, Flipkart, and other similar retailers, as well as physical store sellers, all noted an increase in sales of AC units. Payment options like easy EMI payments and other kinds of no interest loans, paired with spring and summer discounts have allowed a lot more buyers from the middle class to purchase AC units.
The retailers have also seen an increase in the range of advanced models purchased, which incorporate air purification, smart technology, and better cooling systems that increase their overall efficiency.
Issues Related to Energy Usage
Although the increased use of air conditioning systems is beneficial for companies, businesses are worried as it translates to even greater energy consumption. The excessive use of air conditioning units has resulted in increased electricity consumption, which has worsened the state of the power grid within the country. Many regions have already reported power shortages and blackouts, particularly with the peak summer months.
In response, the government is planning to promote solar powered air conditioning units as well as other energy efficient cooling technologies. Corporations also have plans to develop better cooling technologies that could potentially mitigate the long-term effects on the environment due to increasing AC usage.
Final Thoughts
In sharp contrast to the economic hurdles the country is facing, India’s astonishingly hot summer has enabled a flourishing air conditioning market, demonstrating the impact of climate change on spending patterns. Although AC sales are on the rise, matters such as power supply, inflation, and sustainability issues pose a challenge. With rapidly rising temperatures, there is bound to be a further increase in interest towards air conditioning, making it a pivotal field within India’s consumer electronics industry.