As the weather becomes warmer, many people start thinking about buying a new air conditioner. However, this year you may have to pay more because AC prices are expected to increase.
One major reason is the rise in the price of copper, which is widely used in air conditioners. Another reason is the weak Indian rupee, which has become weaker compared to the US dollar. Because of this, imported parts used in ACs have become more expensive.
Copper prices have surged to record highs this year, briefly exceeding USD 14,500 per tonne (intraday) in January 2026. Based on the current project pipeline, the IEA anticipates that the copper market could face a supply deficit of 30% by 2035.
How Copper is Used in Air Conditioners (AC)
Copper is one of the most important materials used in air conditioners. It helps in transferring heat and cooling the air efficiently.
1. Copper Tubes for Refrigerant Flow
Copper pipes are used inside AC units to carry the refrigerant gas. The refrigerant absorbs heat from the room and releases it outside through these tubes.
2. Copper Coils in Condenser and Evaporator
ACs have two main coils – the evaporator coil (inside unit) and the condenser coil (outside unit). These coils are usually made of copper because copper transfers heat very quickly.
3. Copper Wiring and Components
Copper is also used in electrical wiring, compressors, and other components of the AC because it is a very good conductor of electricity.
- Excellent heat conductor
- Strong and durable
- Resistant to corrosion
- Easy to bend into coils and pipes
Simple Explanation
In simple words, copper helps the AC move heat from inside the room to the outside environment. This process allows the AC to cool the room efficiently.
The government has also introduced new energy efficiency rules for ACs. These rules aim to reduce electricity consumption and protect the environment. While these rules are beneficial in the long run, they have increased the manufacturing cost of ACs.
In addition, shipping and logistics costs have increased globally, making it more expensive for companies to import parts from other countries.
Due to these factors, many AC companies have decided to increase prices this year. Customers may have to pay about 5% to 15% more compared to last year.
Several companies have already announced price increases:
- Blue Star increased AC prices by 8% to 10% in February.
- Voltas is raising prices by 5% to 15% due to rising costs.
- LG has increased prices by around 7% for 3-star models and 9% to 10% for 5-star models.
- Haier has raised prices by 5% to 8%.
- Mitsubishi Heavy Industries increased prices by about 5% because of the weaker rupee and higher input costs.
Despite the price hike, companies are expecting strong demand during the summer season, especially if temperatures remain high.
Companies also say that the new energy-efficient AC models will reduce electricity consumption. Although buyers will pay more initially, they can save money on electricity bills over time.
