In a season where the race to dominate India's booming air conditioner market is heating up, Blue Star is making its boldest move yet. The company, which entered the residential AC space in 2011, has steadily grown its presence—and now, with demand for smart and connected appliances at an all-time high, it's gunning for a much larger share of the market.
At the heart of Blue Star's summer 2025 strategy is its ambitious plan to sell five lakh smart ACs—a dramatic leap from the 70,000 units sold in 2023. The company unveiled a massive new lineup of 150 room AC models, including inverter, fixed-speed, and window units, with nearly 40 of them featuring smart connectivity.
Blue Star's 2025 Smart AC lineup
The fastest-growing category in the Indian AC market today is the smart, Wi-Fi-enabled segment, and Blue Star is betting big on it. Its expanded smart portfolio comes equipped with Customised Sleep Mode, Voice Assistant Integration, Energy Monitoring, AI Pro+ (a real-time comfort management system using sensor-based automation), and Defrost Clean Technology.
Blue Star's new range covers cooling capacities from 0.8 to 4 tons, starting at ₹28,990, with models in both 3-star and 5-star categories. The company is offering a broad mix of features to suit different usage needs and budgets.
Notable highlights from the launch include:
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Super Energy-Efficient ACs with 6.25 ISEER ratings
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Heavy-Duty ACs that maintain full cooling even at 43°C, with the ability to handle external heat up to 56°C
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Convertible 6-in-1 Cooling for capacity modulation
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Hot & Cold ACs, including a variant designed for use in -10°C temperatures
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Anti-Virus ACs that double up as air purifiers, with HEPA, PM2.5, and carbon filters
Blue Star is backing its 2025 AC portfolio with a strong after-sales and production ecosystem. The company is offering a lifetime warranty on the inverter compressor and a 5-year warranty on PCBs, supported by a pan-India service network of over 2,100 centres and 150 service vehicles. On the manufacturing front, production is spread across three facilities, including its newest plant in Sri City, Andhra Pradesh, which commenced operations in 2023. These facilities currently offer a combined capacity of 1.4 million units, with an expansion plan to reach 1.8 million units in the near future.
Availability spans online platforms, large-format retail chains, and multi-brand offline outlets, ensuring wide access across urban and emerging markets.
Riding the Residential Wave
According to Blue Star, the residential segment is now the fastest-growing part of India's AC market, driven by demand from Tier 3, 4, and 5 cities, the replacement cycle, and multiple AC ownership. The company is aiming for a 14.3% market share in Room ACs by FY26, confident that its blend of design, performance, smart tech, and service will help it outpace industry growth.
"India's residential AC market is at an inflection point," said B Thiagarajan, MD, Blue Star Limited. "With rising incomes and rapid adoption of smart technologies, we are investing heavily across R&D, manufacturing, and distribution to lead this transformation."
