What Are the New Norms?
From January 2026, a revised star-rating regime for room air conditioners will come into effect. The updated norms aim to improve energy efficiency standards, but they will also increase manufacturing costs for new RAC models.
AC Prices Set to Rise From January 2026
With the new star-rating regime kicking in and commodity inflation persisting, the industry is expected to hike prices of new room air conditioner models by 7–8%.
What’s Driving the Price Hike
Higher compliance costs under the new energy-efficiency norms and sustained raw material inflation are the key reasons behind the upcoming price increases.
More Increases Likely Ahead
Another round of price hikes is likely during April–May 2026, which could further reset industry pricing levels and aid margin normalisation through CY26.
Consumer Impact: Pay More for New Models
For consumers, this means air conditioners launched next year will likely come with higher price tags compared to current models.
Pre-Buying Picks Up Pace
Dealers and buyers are already stocking up on existing models, with strong pre-buying activity seen in December ahead of the new norms.
Industry Volatility Over the Past Two Years
After nearly 40% growth in CY24, the RAC industry faced challenges in CY25 due to weak weather demand, GST transition issues, excess inventory, and heavy discounting.
CY26 Outlook: Demand Rebounds, Prices Climb
While demand is expected to recover strongly with 20–22% volume growth in CY26, consumers should brace for higher prices as new-compliant models enter the market.
(This article has been syndicates from ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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