Sales of ACs and refrigerators in India, particularly in the northern and southern parts, grew upto 35% in April, with the temperature rising continuously.
With the temperature going up in India, sales of refrigerators and air conditioners (ACs) increased 30-35% in April 2009 against April 2008, as reported by Economictimes.
LG, the market leader in India, has claimed to have sold 2 Lakh ACs during the month, 30% higher than April 2008. According to LG, models with 2-3 star rating comprised two-third of its April sales. Also, its refrigerator sales surged 35%. Samsung, which is selling only 5 star rated refrigerators, saw almost 25% growth in sales of both ACs and refrigerators in April, while Godrej Appliances witnessed nearly 30% increase in the sales of these items.
Split models were the major drivers of the growth in AC sales, as over the past few years these models have been witnessing higher sales than the relatively cheap window ACs. On the other hand, mass direct cool segment led the growth in sales of refrigerators in India.
As the mercury has sharply risen in April, the demand for air conditioners has outshined the supply. According to consumer durable companies, northern and southern parts of India, particularly, posted high demand.
A latest report "Booming Consumer Electronics Market in India" from RNCOS highlights that growing affluent middle class population, encouraged by rapid growth in the economy, has attributed a highly dynamic nature to the consumer electronics industry of India. Factors like booming retail sector, increasing disposable income and easy availability of finance have led the industry to experience commendable growth in past few years.
Despite this, consumer electronic goods, such as microwave, washing machines and refrigerators are having low penetration in India, which represents enormous future growth potential. Consequently, many international companies are looking forward to enter the Indian market.
In wake of economic slowdown, Indian consumers have grown increasingly price-conscious and are mainly spending on the economy segments, like one-tonne split ACs.
According to a Research Analyst at RNCOS, "Lower electricity bills have successfully compensated the premium on products having higher star ratings. In view of production constraints, companies are offering window ACs only upto three-star rating while all star ratings are being offered for split ACs. However, with consumers getting increasingly aware of energy efficiency, demand for higher rated products is poised to soar in coming times."
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