LG Targets 2 Million AC Sales in 2024: Harsher Summer & IoT Boost

New Delhi, Apr 15 (PTI) Appliances maker LG Electronics has recorded sales orders of 1 million units for residential air conditioners this year so far and looks to sell around 2 million units in the whole year, a company official said on Monday.

The company this year witnessed a "high double-digit growth" in sales from the southern markets where the sales season starts early in February. It expects to witness the same momentum in the North and other markets as temperature rises in summer season.

The company also expects 10 per cent of its total sales in 2024 to come from smart range, which is connected wirelessly to the internet with features such as IoT (Internet of Things), LG Electronics India Senior Vice President Sanjay Chitkara said.

"We are expecting to cross 2 million units in sales this year - expecting 10 per cent to be smart and IoT enabled," Chitkara told PTI.

According to him, this number could be even higher than 2 million as the growth is supported by factors like a rise in disposable income and forecast of a harsher summer season this year.

The company has witnessed almost two-fold growth in sales from the Southern. On average, the North region, which witnessed heat waves in May and June, contributed over 50 per cent of air conditioner sales of AC makers.

"Now Southern India is experiencing very hot weather these days and demand has gone up two to three times in states like Kerala and Karnataka," he said, adding that Bengaluru and Pune have suddenly become hot.

These two cities were never an air conditioner market but this year sudden demand has come.

It has witnessed similar trends in East-West and Madhya Pradesh, where sales started picking up in February and March.

"We are foreseeing a regular summer season in North India. Future weather forecast is promising," Chitkara said.

The company expects that in the next three years, over 70 per cent of residential ACs sold by it will be smartly connected with modern features, which will also help consumers save energy.

On the price difference between a normal inverter AC and a smart range of AC, Chitkara said it is roughly around 4 to 5 per cent.

"This difference is almost 10 per cent but we are subsidising it for the users, not giving the load to them," he said, adding that the company is promoting this technology for the AC segment.

According to Chitkara, the penetration of AC in the Indian household is below 10 per cent and has a huge room for growth.

LG Electronics India, a wholly owned subsidiary of South Korea-based major LG Electronics Inc, on Monday launched 77 new models of air conditioners.

The company competes with other makers such as Voltas, Blue Star, Hitachi, Lloyd, and Samsung, among others.

According to the market watchers, the size of the Indian residential AC is estimated to be around 10 million units and with a double-digit growth, it would touch around 11.5 million units.

Earlier this month, Tata group firm Voltas announced to crossed the milestone of two million units of AC in FY24.