LG AC sales cross 1 million in 100 days, to cross 2 million mark in CY24

As the India Meteorological Department (IMD) predicts scorching temperatures across the country in the coming days, there has been a significant uptake in air conditioner (AC) sales across the country. South Korean technology giant LG Electronics has already registered 1 million AC sales (order-based to its retail partners) in the first 100 days of 2024 and expects to close the year with over 2 million AC units.

Sanjay Chitkara, Senior VP and Business Head for RAC & Sales Head, LG Electronics India told Business Today, “We have received a great response from our partners that we have crossed 1 million order-based quantity in 100 days this year. We are getting very encouraging responses from south and east India, with the demand starting in the west as well.  We are geared up with all preparation, can cater up to 2.5 to 3 million units also, depending on how the season goes. We are hopeful of closing ”

LG hopes to increase its market share on the back of growing demand. “In 2023, our market share in terms of value was 19.8% across multi-brands and exclusive environments. This year (January to December), we aim to achieve a 25% market share. We are making substantial R&D investments to meet the demands of the Indian market,” adds Chitkara.

For instance, to cater to this growing demand for ACs, LG has launched 77 new models in its 2024 AC lineup, focusing on energy efficiency, style, and performance. LG has introduced the Energy Manager feature allowing users to define their energy usage preferences and periods, and optimize compressor usage and minimize energy consumption. In addition, LG has introduced Diet Mode that the company claims reduces power consumption by an impressive 81% while maintaining optimal cooling efficiency. Also, for those who are looking for stylish ACs, LG has introduced a new ArtCool series with a Black Mirror Finish. This new lineup is priced between Rs 35,000 to Rs 60,000.

Scaling manufacturing isn’t a challenge for LG as the company sources all its components locally, confirms Chitkara. “LG air conditioners are completely Indian. The biggest component in an AC is a compressor. We are producing compressors in our factory itself. We are aligned with the Prime Minister’s vision of Make in India.”

The company is manufacturing ACs at two locations in India  - Greater Noida and Pune - with the capacity to manufacture 2.5 million units in a year. But given the demand, it can be scaled up further. “We can meet the scaling demand easily. If we run our factories on multiple shifts, we can produce even more. Usually, we run one shift only but looking at the demand we are already running two shirts at the factories,” adds Chitkara.

Other than helping meet the domestic demand, LG is also exporting made-in-India ACs to neighbouring countries like Sri Lanka, Nepal, Bangladesh, Maldives, to name a few.