Europe heatwave: Indian AC makers eye market, face competition from China, South Korea
Demand for cooling products in Europe has risen sharply, with both sales and customer enquiries increasing two to three times. (AI image) Europe a new
Demand for cooling products in Europe has risen sharply, with both sales and customer enquiries increasing two to three times. (AI image) Europe a new market for Indian AC makers Not an easy fruit to pick Europe heatwave impact: Indian manufacturers of air conditioners are gearing up to enter the European market, encouraged by surging demand for cooling products following record-breaking heatwaves and the growing impact of global warming. However, they are expected to face stiff competition from Chinese and South Korean brands, which currently dominate the region and reportedly enjoy a 15-18% cost advantage over Indian manufacturers.Demand for cooling products in Europe has risen sharply, with both sales and customer enquiries increasing two to three times. Recognising the sector's potential, the Centre has, since last year, identified air conditioners as a high-value manufacturing opportunity similar to smartphones. Commerce and Industry Minister Piyush Goyal and Electronics and Information Technology Minister Ashwini Vaishnaw have also urged manufacturers to expand exports.The World Health Organization (WHO) has cautioned that Europe's "once-in-a-generation" heatwaves are increasingly becoming an annual event due to climate change.WHO Director-General Tedros Adhanom Ghebreyesus said that more than 1,300 excess deaths have been recorded since June 21 because of extreme temperatures.He added that Europe is "the fastest-warming continent on Earth," with temperatures rising at twice the global average.
According to the WHO, nearly 150 million people across Europe are currently living under extreme heat conditions.Before entering the market, Indian companies will have to comply with Europe's stringent certification and product quality requirements. Industry executives told ET that commercial exports from India are likely to begin only from 2027."While we had been studying opportunities in Europe since last year, this year's heatwaves have opened our eyes," said Kamal Nandi, Head of the Appliances Business at Godrej Enterprises Group. "Immediate sales are not possible because of stringent certification requirements, but we definitely plan to launch by next summer."So far, exports have remained limited, partly because domestic air-conditioner penetration in India is still only around 10-11%. Air conditioners are also the only white goods segment covered under the production-linked incentive (PLI) scheme, prompting the government to push for higher export earnings from the industry.Noida-based Havells plans to start exporting air conditioners and fans to Europe through distributors after initially concentrating on the US market.Contract manufacturers, including Amber Enterprises—which supplies products to brands such as LG, Daikin, Samsung and Blue Star—are also assessing opportunities to export.
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