AC makers are sweating it out as freak weather conditions and frequent thunderstorms across several states have kept searing temperatures at bay, leading to lower footfall at showrooms and sluggish sales. States such as Delhi, Rajasthan and Uttar Pradesh have seen frequent bouts of thunderstorms and light rains. Demand in March-May — peak season for AC sales — has remained weak. According to industry officials, sales are 10-15% lower than last year and a revival looks tough, considering the monsoon is set to arrive before time. The uncharacteristic weather has made the situation tough, said Rahul Tayal, director (strategic business and marketing) at LG India. “Industry volumes have been impacted. The heat wave is missing in north India and in parts of south India.” Gaurav Sah, business head for ACs at Panasonic India, said, “A weak summer has been the primary reason for low off take in the AC market. Pre-season stocking due to change in energy efficiency rating further impacted the inventory.” He, however, added that Panasonic has registered growth in value terms. Voltas, which leads the AC market, said companies are shifting focus to other regions that are not touched by adverse weather conditions. “Brands having an extensive national footprint are focusing on markets like central and western India, where the heat now seems to be picking up,” a spokesperson at the Tata-group company said. The slow off take has triggered discounts, offers and freebies.

(Source: Times of India, Mumbai, May 22, 2018)