LG Expects India to Remain its Largest Global AC Market
South Korean electronics giant LG anticipates that India will remain its largest market worldwide for residential air conditioning by sales volume, as the nation presents considerable growth opportunities.
India is one of LG's top three HVAC (heating, ventilation, and air conditioning) markets worldwide, alongside the US and Brazil; however, there is potential for growth in the commercial air conditioning sector, according to Kiyoon Seong, Head of Eco Solution Asia/India Sales & Marketing Department at LG Electronics.
"India has a large population and relatively low AC penetration, which indicates significant growth potential. India is already one of LG's top three HVAC markets globally. In the RAC (residential air conditioning) business, India is LG's number one market worldwide in terms of sales volume," he says.
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Seong addressed a question regarding the importance of the Indian market for LG and its position within the company's worldwide HVAC sectors.
AC penetration in India rose from approximately seven percent to 12 percent over the past decade.
Regarding SAC (system air conditioning), Seong noted that market dynamics vary by region, with specific markets experiencing robust demand from specialized sectors like data centers.
Regarding cost pressures, he noted that component prices have risen because of geopolitical conflicts and escalating material expenses.
"We are seeing cost pressure 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," he notes.
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Seong stated that the Indian market has seen price hikes for ACs recently because of increased commodity prices, such as copper, aluminum, and petrochemical materials, noting, "despite the substantial rise in raw material costs, LG is still striving to minimize expenses whenever feasible."
LG Electronics, having detailed its vision for robotics, envisions a 'Zero Labor Home' in the long run, where autonomous home robots, AI coordination, and interconnected appliances collaborate to actively handle routine tasks, enhancing convenience, independence, and overall quality of life.
LG aims to strengthen local capabilities in India by attracting premier talent and improving infrastructure R&D to address the increasing demand as the home appliances market in India approaches a turning point.
It remains receptive to mergers, acquisitions, and strategic collaborations with regional firms to explore growth prospects in India, while also venturing into high-potential industries like HVAC (heating, ventilation, and air conditioning).
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The Indian division of the company, which successfully went public on the stock exchanges last year, is also aiming to broaden its AI product offerings in the nation.