According to Reuters, Indian air conditioner manufacturers forecast record sales this year as a heatwave sweeps the country, but delayed component imports from COVID-affected China may result in luxury product shortages.

With temperatures in New Delhi exceeding 49 degrees Celsius this month, sales are expected to reach 8.5-9 million units this year, up from 6.5 million in 2019, according to the chairman of the Consumer Electronics and Appliances Manufacturers Association (CEAMA).

On Tuesday, CEAMA President Eric Braganza, formerly the India head of China’s Haier Appliances, stated, “The market has been exceptionally fantastic because we had the heat in the second half of March rather than April this year.”

Power demand has also reached new heights, with India experiencing its hottest March in almost a century and an abnormally warm April.

“Supplies are taking longer to reach because of (COVID-19-related) difficulties in China,” Braganza said. “As a result of the increased demand, we’ve discovered that energy-efficient air conditioners are in short supply.”

Voltas Ltd, Whirlpool of India Ltd, and Havells India Ltd are among the association’s members. Braganza claimed components deliveries from China are now taking 60-90 days, up from 45 days previously.

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Compressors and controllers are among the AC components that Indian firms rely on from China. According to Braganza, sales of energy-efficient air conditioners will be hit the worst because other products rely heavily on locally manufactured components.

Due to a “mad rush to block the quantities from the vendors,” Blue Star Ltd, one of India’s most well-known AC sellers, said on a conference call this month that it has quadrupled the inventory for some commodities like semiconductors to 90 days.

Voltas, a subsidiary of India’s Tata conglomerate, claimed it only imports a few components because it has been working to increase localization over the years.

However, due to the high demand in March and April, some products may be in low availability.

Braganza predicted that if the currency strengthens and raw material costs rise later this year, businesses will be obliged to raise pricing.
The Indian rupee fell to a new low of 77.7975 per dollar.