LG Electronics expects India to remain its top market for residential air-conditioners on the back of strong growth fuelled by lower penetration and higher disposable incomes. The South Korean consumer durable major said it is strengthening its market leadership in the India market through locally optimised HVAC (Heating, Ventilation, Air-Conditioning) solutions, especially with the third factory now coming up in Sri City.
Speaking to reporters recently, Kiyoon Seong, Head of ES Asia/ India, Sales & Marketing Department, LG Electronics said, “India’s AC penetration has grown to 12 per cent now, from about 7 per cent ten years ago. Air-conditioners are no longer considered to be a luxury, but an essential product in the country. India has a large population, but the penetration of air-conditioners still remains low. For room air-conditioners, 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.”
In terms of the overall HVAC business, India is among the top three markets. “There is a lot of room for growth in the commercial air-conditioning business. 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,” Seong noted.
Currently, the company operates two manufacturing units in Noida and Pune, with a new facility coming up in Sri City. The company said the third facility will not only support Southern India supply, but also focus on global exports besides strengthening its ‘Make-in-India’ strategy.
AC makers in the country have had to take at least three rounds of price hikes this year due to implementation of new BEE ratings, as well as higher raw material costs. Responding to a query on the impact of the ongoing geopolitical conflict, Seong said , “We are seeing cost pressures, 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. The Indian market has experienced AC price increases in recent years due to higher commodity costs, including copper, aluminium and petrochemical-based materials. Although raw material costs have risen significantly, LG continues to work on reducing costs wherever possible.”
(The writer was recently in Seoul at the invitation of LG Electronics India)
Published on June 15, 2026
