AC price reduction during festive season

Air conditioner manufacturers have reduced prices by up to 10 percent during the festive season due to GST rate revisions and weak sales caused by widespread rains this year. However, industry sources indicate that AC prices may increase again by 3 to 12 percent starting January.

The expected hike is mainly due to new energy efficiency standards being introduced by the Bureau of Energy Efficiency (BEE). These norms aim to reduce power consumption, which often becomes a burden for users despite easy purchase options.

From January 2026, companies will be required to manufacture ACs strictly as per the new BEE standards. This will involve the use of higher-quality raw materials and changes in manufacturing processes. Rising metal prices, increased import costs of components, and the weakening rupee are also adding to production expenses.

While 3-star AC prices may rise by 3–4 percent, companies are planning an 8–12 percent hike for 5-star models. Dealers are currently holding higher inventory levels, and existing stock can be sold until exhausted before the new standards come into force.