NEW DELHI — As India prepares for a forecasted intense summer in 2026, leading room air conditioner (RAC) manufacturers have begun implementing price hikes ranging from 5 to 15 per cent. The adjustments, rolling out between February and April, are designed to counter sustained increases in raw material costs, a weakening rupee, and the implementation of more stringent energy-efficiency standards.
Industry giants including Voltas, Daikin, Blue Star, LG, and Haier confirmed that the price revisions are essential to maintaining quality amid global economic shifts. Key drivers for the hike include the soaring cost of copper and aluminum, record-high US dollar exchange rates making component imports costlier, and increased international freight expenses. Additionally, new Bureau of Energy Efficiency (BEE) norms that took effect on January 1, 2026, have mandated a 10 per cent increase in energy efficiency for star-rated models, further raising manufacturing expenses.
Manufacturer-Specific Price Adjustments
| Manufacturer | Price Increase | Effective Date / Details |
| Voltas | 5 – 15% | Calibrated adjustment throughout the year. |
| Daikin India | Up to 12% | Effective April 2026; varies by model. |
| LG Electronics | 7 – 10% | 7% for 3-star and 9–10% for 5-star models. |
| Blue Star | 8 – 10% | Implemented mid-February; old stock still in market. |
| Haier India | 5 – 8% | Effective March; 5% for 3-star and 8% for 5-star. |
| Mitsubishi Heavy | 5% | Primarily attributed to the weakening rupee. |
Despite the higher price tags, industry executives remain optimistic about 2026 sales. Following a lacklustre 2025—which saw negative growth due to unseasonal rainfall—manufacturers expect a major rebound. Kanwaljeet Jawa, Chairman of Daikin India, noted that the industry is targeting at least 15 per cent growth, potentially matching the record-breaking sales seen in 2024.
To soften the blow for consumers, manufacturers are highlighting long-term savings. Sanjay Chitkara, Director at LG Electronics India, pointed out that while upfront costs are higher, the new models are roughly 11 per cent more efficient, leading to lower monthly electricity bills. Furthermore, a reduction in GST from 28 per cent to 18 per cent for energy-efficient appliances has helped offset a portion of the manufacturing cost increases, making the transition to modern units more accessible for the middle-class segment.
