Kerala’s air-conditioner market is witnessing a sharp rise in sales as persistent hot weather pushes households to invest in cooling appliances. Although intermittent showers have brought temporary relief in some parts of the state, temperatures remain high enough to keep demand for air conditioners, fans and air coolers strong.
Dealers across Kerala are reporting increased consumer interest in air conditioners, helped further by attractive discounts and financing schemes offered by retailers. The changing perception of air conditioning is also contributing to the growth of the market.
Once largely considered a luxury purchase, air conditioners are increasingly becoming a common household appliance, including in smaller homes. More affordable models, seasonal promotions and easy instalment payment options are making the products accessible to a wider section of consumers.
GST reduction boosts demand
The reduction in Goods and Services Tax on air conditioners from 28% to 18% had earlier provided a boost to the market by bringing down the effective price of the appliances. However, manufacturers and retailers are now facing higher input and production costs, putting renewed pressure on prices.
Traders say some consumers are bringing forward their purchase plans amid expectations of further price increases. Many retail outlets are also offering monthly instalment schemes, allowing customers to purchase air conditioners without paying the entire amount upfront.
Prices face further pressure
Changes in the Bureau of Energy Efficiency’s star-rating requirements had already contributed to higher prices for air conditioners and refrigerators earlier this year. Manufacturers have had to adjust products to meet the revised efficiency standards, adding to the cost of appliances.
Supply-side pressures are also influencing prices. Disruptions linked to tensions in West Asia have affected the availability and cost of certain raw materials and gases used in the manufacture of home appliances. Currency movements, including a weaker rupee, have added another layer of pressure on imported components and production costs.
Several manufacturers have already increased air-conditioner prices by up to around 10%, according to traders, with additional increases possible if input costs remain elevated.
With temperatures continuing to support demand and consumers looking to buy before another round of price increases, Kerala’s cooling-appliance market is entering a strong sales period. For retailers and manufacturers, the combination of weather-driven demand, financing offers and changing consumer preferences is creating favourable conditions for continued growth.
