LG sees India retaining top spot in global AC sales volume as cooling demand gathers pace

South Korean consumer electronics major LG expects India to continue to be its number one market globally for residential air conditioning by sales volume with the country offering significant growth potential, according to a senior company official.

India, which is among LG's top three HVAC (heating, ventilation, and air conditioning) markets globally along with the US and Brazil, however, has room for growth in the commercial air conditioning business, LG Electronics Head of Eco Solution Asia/India Sales & Marketing Department, Kiyoon Seong told visiting Indian journalists here.

"India has a large population and relatively low AC penetration, which indicates significant growth potential. India is already one of LG's top three HVAC markets globally. In the RAC (residential air conditioning) business, India is LG's number one market worldwide in terms of sales volume," he said.

Seong was responding to a query on the significance of the Indian market for LG and its ranking among the company's global HVAC markets.

He, however, added, "LG has room for growth in the commercial air conditioning business (in India). India is one of LG's key strategic markets globally. That is why LG established its third manufacturing facility in India to strengthen local production and support future growth." When asked about the potential for growth in the Indian market, Seong said, "For RAC, India is already the largest market in terms of sales volume, and we expect this trend to continue because the market still has significant growth potential." AC penetration in India has increased from around 7 per cent to 12 per cent in the last ten years.

For SAC (system air conditioning), Seong said market dynamics differ by region with certain markets having strong demand from specialised sectors such as data centers.

Commenting on cost pressure, he said due to geopolitical conflicts and rising material costs, component costs have increased.

"We are seeing cost pressure particularly from compressors, heat exchangers and other key components required for higher-efficiency products. This is not unique to LG and is affecting manufacturers across the industry," he noted.

The Indian market has experienced AC price increases in recent years due to higher commodity costs, including copper, aluminum and petrochemical-based materials, Seong said, adding "although raw material costs have risen significantly, LG continues to work on reducing costs wherever possible".

LG Electronics, which has outlined its robotics vision, is looking in the long term at 'Zero Labor Home', where autonomous home robots, AI orchestration and connected appliances work together to proactively perform everyday tasks and deliver greater convenience, autonomy and quality of life