DPIIT's compressor import cap threatens AC, refrigerator supply as domestic capacity covers half of demand
May 8 order limits compressor imports to 30-40% of FY25 volumes. India's AC capacity is 7-8M units against 15M demand; refrigerators 8.5-9M vs 14.5-15M. Blue Star, LG, Samsung, Godrej, Daikin warn of shortages. Full localisation pegged at end-2028.
What happened
Blue Star · DPIIT's May 8 order capping compressor imports at 30-40% of FY25 volumes risks AC and refrigerator shortages, as domestic capacity covers only half
Key facts
- 40% of FY25 imports (refrigerator compressors)
- 30% of FY25 imports (AC compressors up to 2T)
- 90% (above 2T)
- 85% of sales
- AC capacity 7-8M vs demand 15M
- Refrigerator demand 14.5-15M vs capacity 8.5-9M
- self-sufficiency by end-2028
Why this matters
Scout M&A or JV targets in domestic compressor manufacturing now—the 2028 localisation runway makes capacity a scarce strategic asset and acquisition multiples will only rise.