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The market for energy-efficient products is expected to rise as stringent green norms compel manufacturers to take a long hard look at this category. The move towards energy-efficient products also comes at a time when inflationary pressures continue to bog down consumers.
Inverter air conditioners that can adjust to room temperature by running at variable speed thereby bringing down energy consumption is one such product that is slowly but steadily picking up in the marketplace.
Standing at one% last year, these ACs today constitute about 3-4% of the 3.2-million-unit total AC market in the country. By next year, this segment is likely to constitute about 7-8% of the total AC market, manufacturers such as Panasonic, LG, Daikin and Sharp say.
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"Regular air conditioners switch on and switch off when adjusting to room temperature. This pushes up energy consumption. Inverter ACs, on the other hand, may either slow down or increase their compressor speed. The drawing of energy as a result of this is lower, which brings down a consumer's energy bill, " says Saurabh Baisakhia, business head, air conditioners, LG India.
By some estimates, energy consumption can be lowered by 20 to 25% with the use of inverter ACs.This is when compared to a five-star rated AC. "Energy consumption, however, can be lowered to as much as 40 to 45% when you compare the energy efficiency of an inverter AC versus a three-star rated product," says Suresh Kumar Bandi, divisional deputy managing director, Panasonic India.
Predictably, the price of an inverter AC is steeper than five-star rated products, costing anywhere between Rs 40,000 to Rs 45,000 for a 1.5-tonne unit. A five-star split air conditioner of the same size comes for Rs 35,000 to Rs 36,000 in the marketplace.
But companies are increasingly offering EMI schemes to help consumers make the switch from five-star rated ACs to inverter ACs. "These are the consumers who are most likely to make the transition since they do not mind playing a little more to own a product which is better in terms of energy efficiency," says Kanwal Jeet Bawa, managing director, Daikin India.
Baisakhia of LG says that the market for inverter ACs is expected to get a boost as the price differential between five-star rated products and inverter ACs comes down. "The price differential is almost 20% at the moment. By next year, this should come down to about 10 to 15%," he says. This is expected to happen with the use of better technology as well as the propensity of manufacturers to push discounts and waive installation charges on purchase of inverter ACs.
As things stand now, owners of five-star rated split ACs constitute about 25% of the total split AC market in India. The total split AC segment, for the record, is 75% of the total AC market in the country. Window ACs, on the other hand, constitute 25% of the market. The latter is a shrinking segment as new homes have no provision for them coupled with the tendency of consumers to go for products that are aesthetically appealing and have better features.
