Weather Anomalies hamper Overall Sales in AC Sector

In the wake of anomalous weather conditions and frequent thunderstorms across several states, AC makers have witnessed a lower footfall at showrooms and weak sales.

According to industry officials, sales are 10-15% lower than last year and a revival looks tough, considering monsoon is set to arrive before time. March-May which is considered the peak season for AC sales remained sluggish.

The inconsistent weather has made the situation tough, said Rahul Tayal, director (strategic business and marketing) at LG India. “Industry volumes have been impacted. The heat wave is missing in north India and in parts of south India.”

Gaurav Sah, business head for ACs at Panasonic India, said, “A weak summer has been the primary reason for low offtake in AC market. Pre-season stocking due to change in energy efficiency rating further impacted the inventory.” He, however, added that Panasonic has registered growth in terms of value.

Around 55 lakh ACs were sold in India in 2017, which was 18% higher than 2016. An industry executive said, “AC companies get nearly 60% of sales during this time, which is usually a bumper period.”

Delhi, Rajasthan and Uttar Pradesh were frequently hit by thunderstorms and light rains.

Another executive said, “There has not been a continuous summer because of frequent thunderstorms and other weather phenomena. States such as Punjab, Delhi-NCR region, UP, Madhya Pradesh, Chhattisgarh, and Rajasthan are impacted. In the south, there have been intermittent rains in Tamil Nadu and Kerala. This is not good for sales.”

AC Market leader, Voltas said the companies are shifting focus to other regions that are not touched by adverse weather conditions. “Brands having an extensive national footprint are focusing on markets like central and western India, where the heat now seems to be picking up,” a spokesperson at the Tata-group company said. The slow offtake has triggered discounts, offers, and freebies.