Planning to buy an AC? Big change in price to happen soon

Companies are preparing to increase AC prices as the shortage of construction materials worsens. AC sales are soaring as the heat wave in North India intensifies. Companies are unable to bring enough products to the market in proportion to the increase in demand. The shortage of compressors, copper tubes, aluminum and stainless steel is creating challenges for companies. Companies say that the price of AC will increase by up to 5 percent this summer. Leading companies like Voltas, Daikin, Bluestar and Haier are all preparing for a price increase.

Traders say that they are expecting an increase of up to 30 percent in AC sales as the heat in South and North India increases sharply. A senior official at Voltas said that the shortage of raw materials is a challenge to increase production.

Government regulations and backlash

The central government's restrictions on the import of ACs and key components have also exacerbated the product shortage. Domestic contract manufacturers are unable to bring components to the market in proportion to the increase in demand. The government has not allowed the import of gas-filled ACs. The Bureau of Indian Standards' strict quality guidelines for copper products used in ACs are also causing price increases.

AC prices may increase by Rs 1,500 to Rs 2,000

What's heating up the market?

• AC sales are soaring as the heatwave and summer heat in North India intensify.
• Companies are unable to produce ACs in proportion to demand.
• Raw material shortage and import restrictions are affecting production.
• The Meteorological Department predicts that this year's summer will record the highest heat in history.