Sales of AC hit by pandemic in peak season
Consumer sentiment has been further hit amid reports that there may be a third wave of the pandemic.
New Delhi: For the second consecutive year, sales of air conditioners (ACs) and refrigerators have been hit during the peak season of April and May due to the localised lockdowns and restrictions on account of surging Covid cases in the country.
The pandemic situation has forced companies to recalibrate their target and go for pre-Covid (2019) sales number without being too aspirational.
Leading players in the segment including Voltas, Daikin, Blue Star, Panasonic and Haier reported almost 75 per cent dip in April sales this year when compared with the same month of 2019 performance. Moreover, May 2021 has been a complete washout so far for them.
Consumer sentiment has been further hit amid reports that there may be a third wave of the pandemic.
“We had aspirations to grow more than double digits — but now due to the first quarter getting washed out, our endeavour will be to catch up with last year,” Voltas MD and CEO Pradeep Bakshi told PTI.
Daikin Airconditioning India MD & CEO Kanwal Jeet Jawa said: “If we are able to achieve what we have done in 2019, that would be good enough.” Last year, April was washed out and May was just 10 per cent (of May 2019) and June was less than 25 per cent of (June 2019 sales).
Panasonic India and South Asia President and CEO Manish Sharma said the sale of AC started in March on a positive note, but due to the sudden surge in the number of cases in the second wave and most of the states imposing partial lockdowns, summer sales are being hit.
“We may see a loss of over 50 per cent against sales projections during the ongoing quarter (April-June),” he said.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the entire month of May, which is a period for peak sales of cooling products, would be almost a washout for the industry, as only 15 per cent of the market is open and footfalls at stores are negligible. “I am looking at the trend”, which is similar to that of last year, said CEAMA President Kamal Nandi.
Haier Appliance India President Eric Braganza said, “June is a crucial month and if you lose it, then you can not make up.”
The Indian residential AC market is estimated to be around 7 to 7.5 million units per annum and over 15 companies compete in the segment.
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