Indian AC makers target Europe as record heatwaves open export window from 2027

Godrej, Havells, Amber and Blue Star eye European exports amid record heatwaves, leveraging 15-18% lower production costs and PLI support. Sales targeted from 2027 after meeting CE and energy-efficiency norms, but face tough Chinese and Korean competition and an 80% heat-pump-dominated market.

— Source publishedTue, 30 Jun, 2026, 08:11 IST·First seen Tue, 30 Jun, 2026, 09:54 IST·Source ET Retail

What happened

Godrej Enterprises Group · Indian AC makers including Godrej, Havells, Amber and Blue Star eye European exports amid record heatwaves, targeting sales from 2027

Key facts

  • 15-18% lower production costs
  • 10-11% domestic penetration
  • 80% heat pump AC share in Europe
  • 2-3x demand surge
  • 1,300 excess deaths
  • 150 million under extreme heat
  • 2027 sales start

Why this matters

Watch for European distribution partnerships, JVs, or heat-pump technology acquisitions as Godrej, Havells, Amber and Blue Star race to establish 2027 export beachheads.

What to watch

  • 2027 heatwave severity and standalone-AC demand spikes
  • EU F-gas and energy-label regulatory tightening
  • Chinese/Korean pricing and capacity responses
  • Indian PLI scheme extensions or compressor localization progress
  • First CE certifications and distribution deal announcements from Godrej/Havells/Amber/Blue Star
  • Accelerate CE and EU energy-efficiency certification pipelines ahead of 2027
  • Develop or acquire heat-pump and inverter-AC capability to address dominant EU segment
  • Establish European distribution/after-sales partnerships or local assembly to counter logistics and warranty gaps
  • Lock in low-GWP refrigerant compliance (F-gas regulation) early
  • Use PLI-backed scale to undercut Chinese pricing in price-sensitive southern Europe