Room air-conditioner industry to post sales volume growth of 20-25% in FY25, says ICRA

ICRA forecasts a bright future for the Indian RAC industry, with sales reaching 12-12.5 million units in FY2025. Factors such as rising temperatures, urbanization, and higher disposable income will drive this growth. The government’s production-linked incentive scheme will also boost local manufacturing. However, the industry may face challenges from competition and fluctuating input costs.