Year-Ender 2025 | Outlook 2026: Voltas Sees Strong Long-Term Growth in India’s HVAC and Appliances Market
Reflecting on the year gone by and the road ahead, Mukundan Menon, managing director of Voltas Ltd, said India is entering a sustained growth phase that presents significant opportunities for the HVAC industry.
Mumbai, December 23: Voltas Ltd has underlined strong long-term growth prospects for India’s HVAC and appliances sector, citing robust economic momentum, low air-conditioner penetration, infrastructure expansion, and supportive policy measures as key drivers shaping the market outlook beyond 2025.
Reflecting on the year gone by and the road ahead, Mukundan Menon, managing director of Voltas Ltd, said India is entering a sustained growth phase that presents significant opportunities for the HVAC industry.
“India is at the cusp of a sustained growth journey, with our economy being one of the fastest growing major economies of the world. India’s economic growth, combined with low residential AC penetration (below 8%) and ongoing infrastructure development like metro rail, airports, manufacturing facilities, offices, healthcare, and hospitality, presents significant opportunities for our industry. Tier II & Tier III cities in India are also driving growth due to rapid urbanization and rising middle-class incomes. The Indian HVAC market is expected to reach $30 billion by 2030 with a CAGR of 15–16%.”
Menon said policy initiatives such as the Atmanirbhar Bharat programme and production-linked incentive schemes are strengthening India’s HVAC manufacturing ecosystem and opening pathways for exports.
“The Government of India’s Atmanirbhar Bharat initiative and PLI schemes are driving India’s HVAC equipment manufacturing story. This will create a pathway for us to export these products to a larger global audience and is a step towards our eventual global leadership in this space. India is also leading in standards for energy efficiency and sustainability, which are increasingly critical themes on the global stage.”
Commenting on industry performance in 2025, Menon noted that the year was marked by challenges, including an early and prolonged monsoon that led to industry de-growth compared to the previous year. However, regulatory and fiscal changes provided a turnaround in the latter half.
“The GST reduction on ACs from 28% to 18%, effective September 22, provided a positive boost, driving recovery in the latter half of the fiscal year. The upcoming BEE star rating revision, effective January 1, 2026, is expected to further stimulate demand. Our refreshed BEE-compliant AC portfolio and continued manufacturing investments position us well to lead this transition.”
He added that Voltas Beko appliances, including refrigerators, washing machines, and dishwashers, are gaining traction across categories, reinforcing the company’s ambition to evolve into a full-stack home appliances player.
Highlighting the company’s long-term strategy, Menon emphasised Voltas’ focus on continuous innovation, R&D, and indigenous manufacturing.
“At Voltas, we are leading the transformation with our R&D innovation and world-class manufacturing facilities. Innovation is not a one-time investment; it is a continuous cycle. When product, process, and digital reinforce each other, we create immense value for everyone. Our investments in indigenous manufacturing align with the Atmanirbhar Bharat vision and the sustainability goals articulated by our Prime Minister.”
With policy tailwinds, rising urbanisation beyond metros, and increasing focus on energy efficiency, Voltas expects India’s HVAC and appliances market to remain on a strong growth trajectory in the years ahead.
