The writing is on the wall. Or so we thought. Window air-conditioners (ACs) have been disappearing at a rapid pace. Currently they contribute only about 20 per cent to the overall AC market sales. The lion’s share is held by the split ACs, a segment that entered the market roughly 10 years ago. In fact, in the last 2-3 years, several companies had decided to get out of the windows ACs in a bid to get consumers to buy premium products.

But suddenly, everyone seems to have had a change of heart. With the new energy norms kicking in at the beginning of this year, most AC makers are redrawing their plans. They are taking a shot at window ACs to woo buyers. To be sure, this is a segment that has been fraught with price hikes and little growth for the past two years. Some AC makers have either re-entered or entered the segment for the first time this year. As they incur costs adopting the new energy norms, prices have gone up too. Others believe that the window AC segment still has room for growth and is not likely to get phased out for some time.

Window ACs are still popular in the North which is a big market for ACs. There, they account for as much as 50 per cent of AC sales. Industry players also pointed to the fact that they come with low installation cost compared to split AC and especially fits the bill for consumers looking to frequently change homes or living in rented apartments.

Also at a time when AC makers are trying to rope in new buyers to the category, it can help tap into smaller cities and the hinterland, and appeal to price-conscious first-time buyers. Even though prices have risen, the entry-level window ACs could end up ₹7,000-8,000 cheaper than split ACs this year (though this varies company to company). Windows AC prices typically start from ₹22,900-24,990. In comparison, most split AC prices start at ₹29,000-30,000.

Take Panasonic, for instance. The company announced its re-entry in the window AC market as part of its expansion strategy. The Japanese company believes it will be able to woo first-time buyers who want to buy low-cost products with simpler features. Manish Sharma, MD, Panasonic India and South Asia, earlier said the AC market could grow by 5-8 per cent this year.

Videocon also entered the window AC segment to strengthen its presence in the Northern region. Sanjeev Bakshi, COO, at a conference in April had said that window ACs are popular in North India, and with the new energy norms kicking in, these are affordable compared with split ACs and are likely to attract new consumers.

Even Korean major LG is offering a wide range of options both in split and windows ACs, with unique features such as Himalaya Cool, Monsoon Comfort and Mosquito Away Technology, under its room AC range. LG India Business Head, Room ACs, Saurabh Baisakhia said the company is targeting a turnover of Rs 2,500 crore from the segment by the end of this year. Other players such as like Carrier Midea India which started manufacturing ACs some time ago ensured they had capabilities to manufacture both window and split ACs.

However, not all players are betting big on window ACs. Daikin India is focusing on upgrading consumers to split air-conditioners and has launched AC units with next generation refrigerant HFC32. Kanwal Jeet Jawa, Managing Director, Daikin Airconditioning India in an earlier interaction had said that the company’s strategy is to focus on upgrading the Indian consumer to the inverter split-AC with the advanced refrigerant. Be that as it may, a window has opened again.

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