Indian AC makers eye Europe's heatwave boom, but exports unlikely before 2027
Godrej Enterprises and Amber Enterprises target Europe's cooling surge, backed by PLI incentives. Certification hurdles, energy-efficiency norms and a 15-18% cost disadvantage mean commercial shipments won't land before 2027, with heat pumps holding 80% share of the market they're chasing.
What happened
Godrej Enterprises · Indian AC makers like Godrej and Amber eye Europe's heatwave-driven cooling boom as an export opportunity, backed by PLI incentives, but
Key facts
- 10-11% AC penetration
- 2-3x demand rise
- 80% heat-pump share
- 15-18% cost disadvantage
- 1,300 excess deaths
Why this matters
Explore EU distribution partnerships or local assembly/M&A to close the cost disadvantage and accelerate the delayed 2027 entry window.
What to watch
- First CE certification approvals or pilot shipments announced
- EU F-gas regulation revisions affecting refrigerant compliance costs
- PLI scheme extension or export-linked incentive changes
- European heatwave severity and cooling-demand data in 2025-26 summers
- Component-supply or OEM contract announcements from Amber/Godrej
- Secure EU certification and energy-labeling partnerships through 2025-26
- Explore JV or OEM deals with European HVAC distributors to bypass brand barriers
- Lobby for expanded PLI/export incentives to close the cost gap
- Invest in low-GWP refrigerant and heat-pump R&D to align with EU F-gas rules