India Major Home Appliances Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India is undergoing a major change in its economic environment and is growing fast. The Indian major home appliance market is driven by an increase in the use of online sales, electrification of rural areas, rising disposable incomes, and easy access to the credit. The Make in India Program and the upcoming national policy for electronics (NPE) will further bring about major policy changes in the large appliance industry. There is a rise in the ease of doing business in the market, which can escalate the production and consumption in the market further.

There is a huge amount of FDI in the large home appliance sector. Various companies, such as Germany’s Bosch, Siemens, Turkey’s Arcelik, and domestic brands, such as Godrej and BPL, are planning to invest in manufacturing and use backward integration methods.

Shanghai Hitachi, a joint venture between Hitachi Japan and Shanghai, is also expanding compressor units in Gujarat. Factors, such as high manufacturing costs, high-interest rates of loans from the bank, and Goods and Services Tax on major home appliances purchases might restrain the growth of the market. While a rise in customs duty to reduce carbon emission from appliances is likely drive the large home appliance production in country.

Key Market Trends

Rise in Production of Major White Goods in India

The Indian major appliance market witnessed an increase in the production of white goods, such as refrigerators, washing machines, and air conditioners. Production of refrigerators in India increased 3% y-o-y in the year 2018 to 11.88 million units. Production of washing appliances in India increased by 5.1 % year-on-year in the year 2018 to 5.79 million units. During the year 2018, (up to February 2018), the production of air conditioners in India increased by 4.9% y-o-y to 3.19 million units. The white goods industry is highly concentrated in India, with the top five players accounting for more than 70% of the market share. Xiaomi, a China-based start-up company, entered the white goods segment in India in 2019.

Penetration of Major Home Appliances is Expected to Rise

India is a complex market in terms of the sale of household consumer appliances. As compared to various neighboring countries, there is low penetration of air conditioners, refrigerators, and washing machines in the country. The penetration of refrigerators is pretty low, at around 33%, and the penetration rate of air conditioner stands at 4.50% and washing machines at 13%. A television, on the other hand, has high penetration in the Indian market.

Competitive Landscape

The Indian major home appliance market is moderately concentrated in nature. The white home appliance market is concentrated with five major players occupying the market. However, the kitchen appliances market is fragmented in nature. Haier Group holds the fifth position in the market, and it is aiming to emerge as one of the top three players in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support