India key growth engine for HVAC business, top market for residential air-conditioners: LG Electronics

India’s AC penetration has grown to 12 per cent from about 7 per cent a yr in the past. 
| Photograph Credit score:
KIM HONG-JI

LG Electronics expects India to stay its top market for residential air-conditioners on the again of robust growth fuelled by decrease penetration and better disposable incomes. The South Korean shopper sturdy main stated it’s strengthening its market management within the India market via regionally optimised HVAC (Heating, Air flow, Air-Conditioning) options, particularly with the third manufacturing unit now developing in Sri Metropolis.

Chatting with reporters not too long ago, Kiyoon Seong, Head of ES Asia/ India, Gross sales & Advertising Division, LG Electronics stated, “India’s AC penetration has grown to 12 per cent now, from about 7 per cent ten years in the past. Air-conditioners are now not thought of to be a luxurious, however an important product within the nation. India has a big inhabitants, however the penetration of air-conditioners nonetheless stays low. For room air-conditioners, India is already the biggest market when it comes to gross sales quantity, and we anticipate this development to proceed as a result of the market nonetheless has vital growth potential.”

By way of the general HVAC enterprise, India is among the many top three markets. “There may be a variety of room for growth within the industrial air-conditioning enterprise. India is one in every of LG’s key strategic markets globally. That’s the reason LG established its third manufacturing facility in India to strengthen native manufacturing and help future growth,” Seong famous.

At present, the corporate operates two manufacturing items in Noida and Pune, with a brand new facility developing in Sri Metropolis. The corporate stated the third facility won’t solely help Southern India provide, but additionally give attention to world exports apart from strengthening its ‘Make-in-India’ technique.

AC makers within the nation have needed to take at the least three rounds of worth hikes this yr because of implementation of latest BEE rankings, in addition to greater uncooked materials prices. Responding to a question on the impression of the continued geopolitical battle, Seong stated , “We’re seeing price pressures, significantly from compressors, warmth exchangers and different key elements required for higher-efficiency merchandise. This isn’t distinctive to LG and is affecting producers throughout the business. The Indian market has skilled AC worth will increase lately because of greater commodity prices, together with copper, aluminium and petrochemical-based supplies. Though uncooked materials prices have risen considerably, LG continues to work on decreasing prices wherever attainable.”

(The author was not too long ago in Seoul on the invitation of LG Electronics India)

Revealed on June 15, 2026