Kerala’s air conditioner (AC) market has hit a bit of a cold patch — and it’s not because the machines are running full blast. Thanks to widespread summer rains across many parts of the state, the usual heat-triggered rush to buy ACs has been noticeably muted.
Retailers who were banking on sizzling sales say there’s been a 20% to 40% drop compared to previous years. The cooler nights brought on by timely rains have made people hit pause on their AC purchase plans — at least for now.
Normally, as the temperature rises, so do the sales of appliances like air conditioners, fans, refrigerators, and coolers. It’s a familiar pattern that kicks off as early as January and peaks by March. This year was no different — at least in the beginning. Showrooms across Kerala saw strong crowds in March, with buyers still remembering last year’s brutal summer. Many wanted to beat the heat early.
From once being a luxury item in the homes of the well-to-do, ACs have now found a place in most middle-class households. Even rural areas saw decent sales in the early season. Ramadan added another surprising push, as many mosques opted to install ACs for the comfort of the faithful during prayers.
Unlike in many other parts of India, one-ton ACs are Kerala’s top choice. And among those, five-star rated models are the most preferred, thanks to better energy savings. That said, three-star units still have takers.
Financing options have played a role in keeping sales alive — with banks and NBFCs offering attractive EMI plans, more buyers are opting for monthly payments instead of a lump sum. ACs under ₹30,000 remain crowd favourites.
Even among those who did take the plunge and bought an AC, there’s another kind of heat — installation delays. A good number of recent buyers had to wait up to a week for a technician.
In previous years, showrooms insisted on using only certified installers. But during peak demand, they now rely on outside agencies to get the job done.
One thing’s for sure — there’s no shortage of ACs this time. After facing stock issues last summer, most dealers made sure to stock up well in advance. But with the market cooling off unexpectedly, many are now stuck with unsold inventory.
This is especially a concern for large home appliance chains with multiple outlets. If sales don’t pick up before the season wraps up, dealers might be left with more stock than they can manage. Some say this could even lead to flash offers or deep discounts to clear out unsold units.
Interestingly, manufacturers had hinted at price hikes in March, expecting strong demand. But with sales dipping, any such plans seem to be on hold for now
James Malieakal, who runs Malieakal Electronics in Kollam, summed it up: “Compared to last year, there’s a clear dip in AC sales. The main reason is the weather. People are unsure if the summer will be harsh enough to warrant buying an AC. Only those who really need one are coming forward.”
Still, he remains hopeful. “With banks and financiers offering easy repayment options, more average households are considering ACs. If the mercury rises in the coming days, we might still see sales pick up speed.”
For now, the AC market is waiting — much like its customers — to see if the heat makes a comeback.
