As summer begins, the demand for air conditioners (ACs) increases rapidly in homes.
However, this year buyers may have to spend more money.
Many major AC companies have decided to increase prices by 5 to 15 percent.
The main reason behind this price hike is the rising cost of raw materials.
Along with this, a weaker rupee against the dollar, new energy efficiency rules, and higher freight (transport) costs have also increased production expenses.
Companies are implementing these price hikes between February and April, just before the peak summer season.
Major brands such as Daikin, Voltas, Blue Star, LG, Haier, and Mitsubishi Heavy Industries have either already increased prices or announced hikes for several AC models.
Imported Parts Becoming More Expensive
According to reports, Daikin India Chairman and Managing Director Kanwaljeet Jawa said the company will increase AC prices by up to 12 percent from April, depending on the model.
He explained that new energy regulations have made ACs more efficient, but they also increase manufacturing costs.
At the same time, the prices of key commodities such as copper have risen sharply.
The US dollar is also strong compared to the Indian rupee, and global instability has increased freight costs.
As a result, imported parts used in ACs have become much more expensive.
Other companies are also facing the same situation.
Blue Star announced an 8–10 percent price increase in mid-February.
Meanwhile, Voltas, a Tata Group company, has also announced a 5–15 percent price hike.
Voltas Managing Director Mukundan Menon said that the cost of production has increased by 5–15 percent due to higher prices of copper, aluminum, and steel.
Why Copper Prices Are Rising
Copper plays a major role in AC manufacturing.
It is used in condensers, motors, and electrical wiring, which are essential components of air conditioners.
In 2026, copper prices have increased significantly.
Recent data shows that copper is trading at around $5.6 to $5.8 per pound, which is much higher than last year.
Some reports suggest prices have reached $12,000–13,000 per ton.
The global demand for copper has increased sharply because of industries like electric vehicles, AI data centers, electrification projects, and green energy development.
At the same time, supply shortages are pushing prices even higher.
Most Indian AC manufacturers import copper, so the rising dollar value adds extra pressure.
In March 2026, the USD-INR exchange rate is around 91–92, which makes imported components such as parts and refrigerant gas more expensive.
According to Siddharth Maurya, Founder and Managing Director of Vibhvangal Anukulakara Private Limited, the biggest reason for the price hike is the rise in raw material costs, especially copper and aluminum. When production costs increase, companies usually pass some of that burden on to customers.
New Energy Rules Also Increasing Costs
Another major reason for the price increase is the new rules introduced by the Bureau of Energy Efficiency (BEE).
From January 2026, new star rating norms have come into effect, requiring ACs to be more energy efficient.
To meet these standards, companies have to redesign products and use better materials, which increases manufacturing costs.
However, these new models are expected to consume less electricity and reduce power bills for consumers.
Industry experts believe that 2026 could be as hot as 2024 or even hotter.
In 2024, the AC industry recorded record sales, and this year the market is expected to grow by at least 15 percent.
Despite the higher prices, demand for ACs is likely to remain strong.
People will continue buying them to deal with the extreme heat, though this summer purchasing an AC may cost a little more due to rising copper prices.
