Patna: If you are planning to buy an air conditioner before the summer heat arrives, you may want to check the price tag again.
Several leading manufacturers have quietly increased AC prices by 5% to 15%, making cooling appliances noticeably more expensive just weeks before the peak summer demand begins.
Major brands including Voltas, Daikin, Blue Star, LG Electronics, Haier and Mitsubishi Electric have already implemented the price increase.
But what exactly is behind this sudden rise?
Four reasons why AC prices are climbing
Industry experts say the increase is not due to a single factor, but a combination of several changes happening at the same time.
- First, the global prices of copper and aluminium, two key materials used in air conditioners, have risen significantly. These metals are essential for components such as compressors and cooling coils.
- Second, the weakening of the Indian rupee has made imported parts more expensive for manufacturers.
- Third, logistics and freight costs have also gone up in recent months, increasing transportation and production expenses.
- Finally, new efficiency regulations introduced by the Bureau of Energy Efficiency came into effect from January 1, 2026, forcing companies to redesign and upgrade their products.
New rules mean better ACs — but at a higher price
The revised energy-efficiency rules have changed how star ratings are calculated for air conditioners.
According to industry estimates, new 5-star AC models are around 10–11% more energy efficient than earlier models, meaning they consume less electricity for the same level of cooling.
According to Sanjay Chitkara, director at LG India, the higher purchase price could be offset by lower electricity bills over time.
Industry leaders explain the price hike
Manufacturers say the decision to increase prices was largely unavoidable.
Kanwaljeet Jawa, chairman of Daikin India, said the cost of copper has reached record levels, while fluctuations in global currencies have increased the cost of imported components.
Global economic uncertainty has also pushed up manufacturing costs, leaving companies with limited options.
Meanwhile, B Thiagarajan, managing director of Blue Star, said the company had already raised AC prices by about 8–10% in mid-February.
Why buyers may not notice the hike immediately
Interestingly, the price increase may not be visible everywhere just yet.
Many dealers had stocked up on AC units earlier at older prices, meaning some retailers may still sell existing inventory at previous rates until that stock runs out.
Once the older stock is exhausted, the new higher prices are expected to become more visible in the market.
Despite higher prices, demand may still surge
Even with rising prices, companies remain optimistic about strong sales this year.
India’s room air conditioner market currently sells around 13.5 million units annually, and industry estimates suggest the sector could grow by about 15% in 2026, driven largely by rising temperatures and growing demand for home cooling.
Smart tips if you are planning to buy an AC
If you are considering buying an air conditioner this season, experts suggest a few strategies to avoid paying more than necessary:
-
Look for older stock: Some dealers may still have AC units available at pre-hike prices.
-
Buy before peak summer: Prices and demand often increase sharply in April and May.
-
Consider energy-efficient models: If the AC runs for several hours daily, a 5-star model can help save electricity costs over time.
