The onset of early summer with the sudden rise of temperature in most parts of India has given a big boost to Air conditioners (ACs), inverters, generators and air coolers with demand estimated to be going up between 35-45 percent this season as compared to last year, an ASSOCHAM survey has found.
In all the major cities, the demand for AC has seen a sharp pick up in the last three weeks with the trend growing up by the day, as heat and dust go up, particularly in northern, western and eastern parts of the country. According to the market survey based on feedback from the retailers and distribution chain, the ACs market is expected to increase by 40-45% this year. The apprehensions of deficient rains because of possible El Nino would add to the demand for the electric gadgets including the power backup devices like generators and inverters, reveals the ASSOCHAM latest paper.
Seizing the opportunity, the consumer finance companies are offering tempting offers claiming zero interest options, adding to the demand surge, the survey noted.
In bigger markets and well off areas, the demand for split air conditioners is witnessing a sharp rise, though the base remains low. “As the window space is an issue in growing cities, the split ACs are preferred. Besides, the segment has caught the imagination of the better off and upper-middle-class people, though the price differential between the window and split is upward of 30 per cent”, ASSOCHAM Secretary General D S Rawat remarked.
The survey noted that the customer is a lot more conscious about energy saving devices thanks to the high cost of electricity. The awareness about the star ratings for the electric devices is on the rise, which is a good sign, said Mr. Rawat.
With the increase in demand for electricity and peak hour shortages still seen in several states like UP, Punjab, Haryana, Rajasthan, Tamil Nadu, Karnataka, among others, the demand for the power backup devices like inverters and generators is expected to rise by 20-25 percent this summer over the same period last year. Such devices are in more in demand in tier-II and tier-III cities.
Though air coolers are giving way to air conditioners, the product design for the former has really seen quite an improvement. Some of the high-end air coolers are coming in compact design and shape. However, the key lies in their difference in pricing and power consumption as compared to air conditioners.
While people sweat it out, the business opportunities in the ongoing summer are there for asking, the ASSOCHAM study said.
AC maintenance companies reported a 100 per cent jump in demand over the past week alone while residents grappled with stifling conditions in homes and offices, reveals the survey.