New Delhi [India], Jan. 12 — Consumers planning to buy room air conditioners (RACs) may face higher prices this year, with industry experts projecting a 7-8% increase on new models starting January 2026, according to a report by Equirus.
The report attributed the anticipated price hike to the implementation of the new star-rating regime effective from January 2026 and ongoing commodity inflation. Another round of price adjustments is expected around April–May, which is likely to reset industry pricing levels and support margin normalization throughout 2026.
“With the new star-rating regime effective from Jan ’26 and commodity inflation persisting, industry-wide price hikes of 7-8 per cent are expected on new models,” the report noted.
Channel feedback indicates strong pre-buying activity in December, as dealers and buyers stocked up on existing models ahead of the new norms and expected price increases.
The Indian RAC industry experienced significant volatility over the past two years. After nearly 40% growth in 2024, 2025 proved challenging due to adverse weather, GST transition-related disruptions, elevated channel inventory, and aggressive customer support schemes, which affected demand and profitability.
Looking ahead, the report expects volume growth of 20–22% in 2026, driven by pent-up demand, aggressive stocking of older star-rated models, and hopes for a normal summer season. However, consumers should anticipate higher prices as new star-rating-compliant models enter the market.
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