Voltas MD Mukundan Menon said air conditioner prices to rise by 5-15 per cent this year owing to higher copper prices and the rupee weakening against the dollar.
At the launch of its company’s summer 2026 portfolio, Menon stated that efforts to make AC units more efficient due to this year’s energy label change have also contributed to the increase in production costs.
Menon stated that the copper price has risen to $12,000-13,000 per tonne this year, after hovering around $8,500 per tonne last year. Menon added that there is a significant amount of copper which goes into the air conditioner, and because of that, there is an impact on the overall production cost,
Voltas, a Tata group company having a market share of around 18 per cent in the domestic market, expects domestic AC sales to grow by 15-20 per cent in 2026 over last year.
Voltas focus on AI integration
As AI integration across the sector grows, at the core of Voltas’ summer 2026 product range is its AI-powered Inverter Split AC portfolio, which continuously learns and optimises based on user preferences. The company claims that its Vertis AI series adapts to India’s diverse and intense climate conditions by intelligently sensing temperature, humidity and usage patterns.
“With our AI enabled Vertis Split AC series, complemented by thoughtfully engineered Voltas Beko appliances, we are redefining intelligent, energy conscious and sustainable living for families across India.” Menon said.
Production growth
Voltas is gearing up to meet the enhanced demand, with a production capacity of 30 lakh split AC units, evenly split across two plants in Uttarakhand and Tamil Nadu.
Menon said that the company is looking to enhance localisation levels in AC units from 70 to 90 per cent over the next two years by expanding local sourcing of compressors, motors, PCBs, and copper and aluminium components.
The company has already seen the localisation grow to current levels from 35-40 per cent a few years ago. Menon said the company would like to maintain leadership in the AC segment, backed by new products and enhanced sales and service support.