Daikin India Plans Major Capacity Expansion to Meet Rising AC Demand
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Daikin India is preparing to significantly expand its manufacturing footprint in the country, with plans to increase its annual room air conditioner production capacity to 4 million units by 2030.
Currently, the company produces around 3 million room AC units each year in India. The proposed expansion comes as demand for cooling solutions continues to rise across residential and commercial segments, driven by urbanisation, rising incomes, and increasing temperatures.
New Manufacturing Facility Planned
As part of its long-term growth strategy, the Indian subsidiary of Japan-based air-conditioning major Daikin Industries is planning to establish a new manufacturing plant in Andhra Pradesh. The facility will be the company’s fourth production unit in India and will play a crucial role in boosting overall manufacturing capacity.
The new plant is expected to support the company’s efforts to strengthen domestic production capabilities while ensuring a stable supply of air conditioners to meet growing market demand.
Tapping India’s Growing Cooling Market
India is emerging as one of the fastest-growing markets for air conditioning globally. Rapid urban expansion, rising middle-class consumption, and climate-related factors are contributing to a steady increase in demand for cooling appliances.
By expanding its manufacturing base locally, Daikin aims to enhance its competitiveness in the Indian market while supporting the country’s broader push toward domestic manufacturing.
Long-Term Manufacturing Strategy
The company has been steadily increasing its investments in India, recognising the country’s importance as both a major consumer market and a potential export hub. Expanding production capacity and setting up a new facility will also help strengthen the local supply chain and create employment opportunities.
With the planned expansion and the new plant in Andhra Pradesh, Daikin India is positioning itself to capture future growth in the cooling appliances market while reinforcing its long-term commitment to manufacturing in India.
