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.
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 of demand. Industry says full localisation will take until end-2028.
Why this matters
Adds supply-side pressure on Blue Star after its MD flagged weak summer risks and as AC makers already battle copper at $12,500/t squeezing FY27 margins.
retail-company signals steady at 407 in the last 90 days.