LG become first brand to sell one million dual inverter air conditioners in H1 CY2022

New Delhi: LG Electronic India sold over one million units of residential inverter air-conditioners in the domestic market in the first half of 2022, company officials said on Friday.

Split models accounted for 90 per cent of the total AC sales while window ACs for the rest 10 per cent in January-June 2022, which contributed around Rs 4,000 crore to the revenue, LG Electronics India VP, Home Appliances & Air Conditioner Deepak Bansal said.

"We have become the first brand to sell one million dual inverter air conditioners in the first half of this calendar year,” Bansal told PTI.

LG Electronics India aims to sell around another 200,000 to 250,000 units of ACs in the second half (July-December) and end 2022 with around 1.25 - 1.3 million units, he added.

"We further look forward to strengthening our market leadership position by offering more innovative products based on Indian consumer insights,” Bansal said.

The spike in sales was led by factors such as extremely hot summers this year, the continuance of working from home, which created demand for additional AC and network expansion, he said.

Besides, after shifting to energy-efficient inverter AC, running cost has also come down and created demand, he added.

LG shifted to inverter ACs 2017 and stopped producing normal air conditioners.

When asked about the places from which demand has come, LG Electronics India Business Head, Room Air Conditioner Kulbhushan Bhardwaj said around 55-60 per cent of sales were contributed from the metro cities and the rest from smaller towns.

LG Electronics also sold around 10-12 per cent of its residential AC units through e-commerce platforms.

The average selling price of one unit of inverter AC of LG is around Rs 39,500 in which LG Electronics India has nearly 30 to 35 per cent local value addition depending on the models, said Bansal.

“Recently we have applied for PLI schemes (Production Linked Incentive Scheme (PLI) and expect the localisation to increase over a period of time,” he said.

AC business contributes nearly 15 per cent to LG Electronic India revenue, a wholly-owned subsidiary of South Korea-based LG Electronics.