Panasonic eyes India as top global AC market within seven years
Panasonic expects India to become its largest air-conditioner market globally within the next seven years, an executive told Reuters on Friday, as the Japanese group banks on booming demand in the South Asian country.
Industry estimates show only a tenth of Indian households own an AC, compared with two-thirds in China and one-third in Thailand, even as the world's most populous country frequently grapples with heat waves.
"India's room AC market is already No. 2 for us globally," said Abhishek Verma, head of product marketing and planning at Panasonic's heating, ventilation, and air conditioning and cold chain business in India.
"Maybe in a five to seven years' time frame, we will be the No. 1 market for us globally."
To cater to the growing demand, Panasonic, which currently ships largely to Southeast Asian markets, plans to double its manufacturing capacity to two million units by fiscal 2028.
It is also looking to expand exports from India, Verma said, adding that Panasonic is trying to develop the country into an export hub.
He did not disclose the investment size.
Several global brands, including Apple and Nike , have been boosting their manufacturing in India as they look to diversify their supply chain and the country offers more business-friendly policies and cheap labour.
Panasonic had a 6.7% share of India's nearly $5-billion room AC market in fiscal 2025.
It aims to lift that figure to 8% in calendar 2026, Verma said, a day after the company rolled out 57 new models, including ones with air-purification features designed to address the worsening pollution levels in the country.
Tata Group's Voltas, India's AC market leader with a nearly 18% share, is upbeat about the upcoming summer season, betting on first-time buyers to drive a double-digit revenue growth.
Panasonic is targeting 55% revenue growth in its AC business for the January-June period, peak summer months in India, driven by last year's demand slump and its plans to increase marketing spend by 2.5 to three times this year, according to Verma.
He did not disclose the revenue or marketing budget.
Industry estimates show only a tenth of Indian households own an AC, compared with two-thirds in China and one-third in Thailand, even as the world's most populous country frequently grapples with heat waves.
"India's room AC market is already No. 2 for us globally," said Abhishek Verma, head of product marketing and planning at Panasonic's heating, ventilation, and air conditioning and cold chain business in India.
"Maybe in a five to seven years' time frame, we will be the No. 1 market for us globally."
To cater to the growing demand, Panasonic, which currently ships largely to Southeast Asian markets, plans to double its manufacturing capacity to two million units by fiscal 2028.
It is also looking to expand exports from India, Verma said, adding that Panasonic is trying to develop the country into an export hub.
He did not disclose the investment size.
Several global brands, including Apple and Nike , have been boosting their manufacturing in India as they look to diversify their supply chain and the country offers more business-friendly policies and cheap labour.
Panasonic had a 6.7% share of India's nearly $5-billion room AC market in fiscal 2025.
It aims to lift that figure to 8% in calendar 2026, Verma said, a day after the company rolled out 57 new models, including ones with air-purification features designed to address the worsening pollution levels in the country.
Tata Group's Voltas, India's AC market leader with a nearly 18% share, is upbeat about the upcoming summer season, betting on first-time buyers to drive a double-digit revenue growth.
Panasonic is targeting 55% revenue growth in its AC business for the January-June period, peak summer months in India, driven by last year's demand slump and its plans to increase marketing spend by 2.5 to three times this year, according to Verma.
He did not disclose the revenue or marketing budget.
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