Consumers May Face 7–8% Rise in AC Prices

Blue Star Group President Mohit Sood stated that rising raw material costs and new star rating regulations are leading to an increase in air conditioner (AC) prices. The cost of materials like copper, aluminium, and plastic has gone up, resulting in an 8% rise in manufacturing expenses.

Additionally, new energy efficiency (star rating) norms have added another 4% cost, bringing the total increase to around 12%. However, due to GST benefits, the price burden on customers is expected to be limited to about 7–8%.

He shared these details during the launch of Blue Star’s new AC models in Hyderabad. The AC industry recorded a growth of 20–25% in the previous financial year, but this year it may slow down with a possible decline of around 5%. Growth is expected to recover to about 15% in the 2026–27 financial year.

Despite possible reductions in LNG supply used in manufacturing, there is currently no disruption to production. The company has increased the annual production capacity of its Sri City plant in Andhra Pradesh to 14 lakh units, with the ability to expand up to 18 lakh units if needed.

Around 65% of AC components are now manufactured domestically. The company also introduced its Iconia Premium AC with a Midnight Silver finish, priced at ₹51,000.