As summer approaches, air conditioner (AC) prices are set to rise, impacting consumers planning to purchase a cooling solution this season. According to industry sources, AC manufacturers, including leading brands like Blue Star and LG, are implementing price hikes of around 5-6% starting in April. Several factors contribute to this increase, including higher raw material costs, currency fluctuations, and supply chain disruptions.
This increase also affects publicly listed AC manufacturing companies, making it crucial for investors to track their stock performance. Companies such as Blue Star Ltd, Voltas Ltd, Havells India Ltd (owns Lloyd), and Johnson Controls-Hitachi Air Conditioning India Ltd are likely to see stock market movements as a result of the price hike
Reasons for the AC Price Hike
1. Price Increase by Major AC Manufacturers
Blue Star and LG have confirmed a price hike of around 5% this season.The price increase is applicable across different segments, making it an industry-wide shift.
2. Rising Raw Material Costs
The cost of key AC components, such as compressors and electronic parts, has surged.Many critical AC parts are still being imported, making manufacturers vulnerable to price fluctuations in the international market.
3. Strengthening of the U.S. Dollar
The depreciation of the Indian Rupee against the U.S. Dollar has made imports costlier.As many AC components are sourced internationally, the currency shift directly impacts production costs.
4. High Consumer Demand & Supply Chain Disruptions
The demand for ACs is projected to exceed 15 million units this season, pushing prices higher.Imports from China have slowed, leading to supply chain disruptions and widening the gap between supply and demand.
5. Current AC Price Trends
LG has already raised AC prices by 5%, indicating a broader market trend.The price of a 1.5-ton, 3-star AC has increased from ₹35,000-₹36,000 last year to ₹39,000-₹40,000 in 2025.
Consumers looking to buy an air conditioner before summer should act quickly before the price hikes come into effect. With increasing demand and supply chain challenges, prices may continue to rise further in the coming months.
AC manufacturing Stocks
1. Voltas Ltd (NSE: VOLTAS, BSE: 500575)
2. Blue Star Ltd (NSE: BLUESTARCO, BSE: 500067)
3. Havells India Ltd (owns Lloyd) (NSE: HAVELLS, BSE: 517354)
4. Johnson Controls-Hitachi Air Conditioning India Ltd (NSE: JCHAC, BSE: 543393)
Disclaimer:The information provided in this article is for informational purposes only and should not be considered financial, investment, or purchasing advice. Prices, stock market trends, and economic conditions are subject to change. Readers are advised to conduct their own research, verify details from official sources, and consult financial or industry experts before making any investment or purchasing decisions. Sensexnifty.com is not responsible for any financial losses or decisions made based on this information.
