Buying AC before summer becomes expensive: Companies increased prices by 5-15%; Effect of increase in copper-aluminium prices

Question 1: How much has the price of AC increased and which companies are increasing the prices?

answer: Major AC manufacturers have increased prices by 5% to 15%. This includes big names like Tata Group companies Voltas, Daikin, Blue Star, LG, Haier and Mitsubishi.

Question 2: Why are AC prices increasing suddenly?

answer: There are 4 main reasons behind this:

The new star rating rules of Bureau of Energy Efficiency (BEE) were implemented from January 1.

Question 3: Will the new energy rules provide any benefit to customers?

answer: Yes, absolutely. According to LG India Director Sanjay Chitkara, the ACs coming under the new rules will save about 11% more electricity than before. That means, even if you have to pay more at the time of purchase, electricity will be saved in the long run.

Question 4: What does the head of Daikin India have to say on this increase?

answer: Daikin India Chairman Kanwaljit Java said that the new energy rules have made the products better than before, but they have become expensive. Copper prices have reached record levels. The cost has increased a lot because of the dollar. Due to the ongoing global turmoil, imports have become expensive, so there was no other option but to increase prices.

Question 5: Will the increased prices be visible in the market immediately?

answer: Blue Star MD B. Thiagarajan told that he had increased it by 8-10% in mid-February itself. However, it will take some time to see its impact in the market. Dealers had picked up a lot of stock at the old rates. Until this old stock gets exhausted, customers may get some relief.

Question 6: Will people buy expensive ACs, what do companies expect?

answer: Despite the increase in prices, companies expect record sales in 2026. Considering the summer forecast of the Meteorological Department, Daikin expects that the AC industry will register a growth of 15% this year. Companies feel that it may also touch the record level in the year 2024.

Question 7: What is the size of the Indian AC market and who is the main competition?

answer: The room air-conditioner market in India is approximately 1.35 crore units annually. There is tough competition in the market among companies like Voltas, LG, Daikin, Blue Star, Hitachi, Panasonic and Lloyd. The year 2025 was very slow for AC companies.

Question 8: Has the GST cut given any relief to customers?

answer: LG officials say that the impact of increased costs has been reduced to a great extent due to reduction in GST from 28% to 18%. This has made it a little easier for companies to deliver power-saving ACs to customers.

Knowledge Part: What are the new BEE star rating rules?

From January 1, 2026, the Bureau of Energy Efficiency (BEE) has implemented new standards for ACs. Under this, now 5-star ACs are 10% to 11% more energy efficient than the old 5-star ACs. In simple words, the new AC will provide more cooling with less power.

Smart buying tips for AC

• Check Old Stock: By the end of March, many dealers may have old stock left, which will be available at the old rate.
• Off-Season Discount: Buying before the end of March may be cheaper than the peak heat of April.
• Choose 5-Star only: If your AC runs for 6-8 hours daily, then it is wise to go for a 5-star AC, as the savings in electricity bill will recover the increased cost of the AC in 1-2 years.

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