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Heat Wave Hits Air Conditioner Sales: Demand Outstrips Supply, Losses Mount
Jun 25, 2024 01:27 pm

Divya Delhi: Despite a record-breaking demand for air conditioners during the April-June period, companies like Godrej Appliances, Haier, and Super Plastronics are struggling to meet the demand due to a severe demand-supply mismatch. The unprecedented heat wave has led to a 50% year-on-year growth in air conditioner sales, with sales reaching six million units. However, the companies are facing a potential loss of around one million units due to inventory shortfalls and component shortages.

The industry experts pointed out that suppliers require a 90-day lead time to provide components, making it challenging for companies to meet the sudden surge in demand. The heat wave has been unprecedented, with temperatures soaring above 45-46 degrees Celsius in many parts of the country, leading to a strong demand for air conditioners.

The Indian Meteorological Department (IMD) has issued a red alert in Delhi, Punjab, and other parts of north and central India, warning of severe heatwave conditions to persist. Even Mumbai has seen deficient rains in June, with temperatures remaining high. As a result, companies are facing a backlog of orders and are struggling to meet the demand. The CEO of Super Plastronics said the company is facing a 30% backlog in terms of orders and is doing its best to meet the demand despite supplier difficulties.