Indian air-conditioner manufacturers are exploring opportunities in Europe as record-breaking heatwaves and rising temperatures increase demand for cooling products across the continent. However, industry players say entering the market will not be easy due to strong competition from Chinese and South Korean brands.
Sales and enquiries for cooling products in Europe have reportedly increased sharply in recent months as extreme temperatures affect large parts of the region. The World Health Organisation (WHO) has warned that Europe's severe heatwaves are becoming more frequent because of climate change.
WHO Director-General Tedros Adhanom Ghebreyesus said more than 1,300 excess deaths have been reported since June 21 due to extreme heat. He also noted that Europe is "the fastest-warming continent on Earth", per a report by The Times of India.
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Indian companies prepare export plans
Several Indian manufacturers have begun assessing opportunities in the European market. Industry executives said large-scale exports are likely to begin only from 2027 because companies first need to meet strict certification and quality standards.
"While we had been studying opportunities in Europe since last year, this year's heatwaves have opened our eyes," Kamal Nandi, Head of the Appliances Business at Godrej Enterprises Group, told TOI.
"Immediate sales are not possible because of stringent certification requirements, but we definitely plan to launch by next summer."
Per TOI, companies such as Havells and contract manufacturers, including Amber Enterprises, are also exploring export opportunities. At the same time, global brands are expanding production facilities in India to serve overseas markets.
Regulations and design challenges remain
Manufacturers say Europe presents unique challenges. Heat pump air conditioners, which provide both cooling and heating, account for a large share of residential sales in the region.
Many European buildings are not designed for conventional air-conditioning systems, while heritage regulations often restrict the installation of outdoor units. Products will also need to comply with strict energy-efficiency and environmental standards.
"It's not that easy," said Jasbir Singh, Chief Executive Officer of Amber Enterprises, India's largest contract manufacturer of air conditioners. "First, we have to get the product ready for those countries and clear their energy-efficiency norms," Singh told TOI.
Competition from global brands
Industry executives believe established Chinese and South Korean manufacturers will remain the biggest challenge.
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"Matching the Chinese competition in Europe will not be easy," said B. Thiagarajan, Managing Director of Blue Star. "It also remains to be seen whether this is just a one- or two-month phenomenon that fades when winter sets in," TOI quoted Thiagarajan as saying.
FAQs:
Why are Indian AC makers looking at Europe?
Rising temperatures and frequent heatwaves have increased demand for cooling products across Europe.
What is the biggest challenge for Indian companies in Europe?
They face strong competition from Chinese and South Korean brands along with strict certification requirements.
