New Delhi Indian air conditioner makers are expecting record sales this year as heatwave scorched much of the country, but delayed arrivals of components from COVID-hit China could lead to a shortage of premium products, an industry body told Reuters. can.
The head of the Consumer Electronics and Appliances Manufacturers Association (CEMA) said that with the temperature exceeding 49 degrees Celsius in New Delhi this month, sales this year are set to reach 8.5-9 million units, up from 6.5 million in 2019. higher than the previous record.
“The market has been great because this year, we got the heat in the second half of March instead of April,” said CEAMA President Eric Braganza on Tuesday.
Electricity demand has also hit record highs as India recorded its hottest March in more than a century and an unusually hot April.
“Due to (COVID-19-related) issues in China, it is taking longer for supplies to reach them,” Braganza said. “As a result, and with the increase in demand, we have seen that energy efficient conditioners are in short supply.”
Braganza, whose association members include Voltas Ltd, Whirlpool of India Ltd and Havells India Ltd, said delivery of parts from China is now taking 60-90 days, up from 45 days normally.
Indian companies depend on China for 10 to 20 per cent of AC components such as compressors and controllers. Braganza said sales of energy-efficient ACs will be affected mostly because other products largely use locally made components.
Blue Star Ltd., one of India’s best-known AC vendors, told a conference call this month that it has doubled inventory for certain items like semiconductors by 90 days due to “crazy rush to block quantities from vendors”. Had given.
Voltas, a unit of India’s Tata Group, said it is dependent on imports only for certain components as it has been trying to increase localization over the years.
But it added that some products may be in short supply given the pick-up in demand in March and April.
Braganza said that later in the year, the appreciation of the dollar and rising raw material costs also meant that manufacturers could be forced to increase prices.
The Indian rupee hit a record low of 77.7975 on Tuesday.
“We really have to cross our fingers and wait and see what happens from July to December,” Braganza said.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.