When Hisense spoke to MySmartPrice in October, the message was clear. The company was preparing for a broader, more ambitious expansion in India, one that would go beyond televisions and lean heavily into large appliances. At the time, those plans were still taking shape.
Now, as 2026 approaches, that roadmap is beginning to materialise, with air conditioners becoming the first major category to anchor Hisense's next phase in India. In an interaction exclusively shared with MySmartPrice, the company outlined why air conditioners are not just a portfolio addition, but a strategic reset that signals how it plans to scale in the country.
"AC penetration in India is still in single digits, and over the next 10 years, air conditioners will be the biggest category in terms of CAGR growth," said Pankaj Rana, CEO, Hisense India, describing cooling as the single largest opportunity across the consumer durables landscape. According to Rana, air conditioners are expected to outpace both televisions and refrigerators in value terms, growing to 1.25 to 1.3 times the size of the TV business within five years.
This long-term conviction explains why Hisense is entering the category at a moment when the market is still recovering from a volatile 2025 season. "2025 was not a good year for the AC industry due to weather conditions, but everyone is hopeful that 2026 will be better," Rana said, adding that the company sees the coming year as a reset point rather than a risk.
Competing Beyond Features in a Crowded Market
With nearly 20 brands competing in the room AC segment, differentiation is becoming harder. Rana acknowledges that air conditioners, much like televisions, are increasingly commoditised. "Features alone don't win the market anymore. Everybody has features now," he said. Instead, Hisense is positioning itself around cooling performance, power efficiency, and long-term cost of ownership. "At the end of the day, it is the cost of ownership that matters. An AC is a product that needs annual service and maintenance, and performance has to remain consistent over time," Rana explained, drawing parallels with smartphone battery degradation to highlight why component quality matters in air conditioners.
He added that compressors, evaporator coils, and condenser quality play a decisive role in long-term cooling efficiency. "If the components are of the best quality, cooling performance can remain stable for five, eight, or even ten years," he said, reinforcing why Hisense is leaning on its global supply chain and R&D investments.
Global AC Legacy, Local Manufacturing
A key pillar of Hisense's India strategy is leveraging its 37 years of global experience in air conditioning, spanning both residential and commercial systems. "If a brand is strong in commercial HVAC and VRF systems, R&D for room air conditioners becomes much easier," Rana said, noting that Hisense was among the first brands in China to introduce inverter ACs nearly 28 years ago.
That global experience is now being localised through manufacturing. Hisense's Sri City plant in Andhra Pradesh is set to begin mass production of air conditioners by the end of the month. "All our new air conditioners launching in January 2026 will comply with the revised BEE energy-efficiency norms," Rana confirmed.
With tighter BEE standards coming into effect, he also set expectations around pricing. "Five-star AC prices could increase by around 7–8%, while three-star models may see a smaller 2–4% rise. But customers will get better reliability and higher energy efficiency," he said, framing the shift as a long-term win for consumers rather than just a regulatory change.
Smart ACs Are Hygiene, Not Differentiators
While connected features dominated marketing narratives during IPL campaigns last year, Hisense is taking a more pragmatic view. "Smart and connected ACs have now become hygiene features, just like smart TVs," Rana said, adding that performance and durability will matter far more over time.
That said, Hisense's lineup will still include PM2.5 filters, blue fin technology, and multi-mode cooling, but these are positioned as supporting features rather than headline differentiators.
Portfolio, Pricing, and Channel Strategy
Hisense will launch its Perla Pro Series in India starting the second week of January, with 10–12 SKUs across three-star and five-star variants, ranging from one-ton to two-ton capacities. Pricing will start at around ₹30,000 and go up to ₹50,000, squarely targeting the mass-premium and premium segments.
Design is another focus area. "We are bringing our global curved designs to India. These are some of the most premium-looking ACs in the Hisense portfolio," Rana said, adding that the company's FIFA 2026 partnership will also be leveraged heavily during the launch phase.
On distribution, Hisense is taking an omnichannel approach, spanning Amazon, Flipkart, quick-commerce platforms, and an aggressively expanded offline retail network across North, West, South, and East India.
Looking Beyond Room ACs
While the initial focus is on room air conditioners, Hisense is already eyeing adjacent categories. "Cassette ACs and light commercial air conditioning are growing very rapidly, even in residential spaces," Rana noted, pointing to a broader shift toward premium cooling solutions. Longer term, the company plans to expand its India manufacturing footprint into washing machines across top-load, front-load, and semi-automatic segments, reinforcing its Make in India strategy by mid-2026.
Hisence’s Big Move
Hisense's AC entry is less about chasing a hot season and more about timing a structural shift. With energy norms tightening, consumers becoming more efficiency-aware, and cooling emerging as a year-round need, the brand is positioning itself around durability, ownership cost, and manufacturing scale, rather than short-term feature plays. If execution matches intent, air conditioners could become Hisense's most important appliance category in India over the next cycle.
