The highest sales figure of split A/Cs was recorded in the Punjab where the temperature in some of the cities has broken the previous 100 years record. However, in Karachi, where evenings and nights are cooler, spurt in demand is not as steep. “The buying euphoria in Punjab cannot be matched with Karachi,” a local dealer commented.
If the total annual demand or sales of split A/Cs is considered at 350,000 units, as claimed by the industry, then about 40 per cent of the annual sales have already been covered by the end of June 2005.
“Currently, there is a shortage of 1.5-ton air conditioners in the market, as old stocks have already been sold out,” an executive at a leading domestic appliances company, who asked not to be named, told Dawn on Wednesday. At present the market is flooded with one-ton split A/Cs.
Giving the reason for a phenomenal boom in sales, he said that the companies involved in the A/C business were expecting the lifting of A/Cs in March, April and May, but unfortunately sales could not pick up due to late start of the summer season coupled with showers in Punjab.
The month of June turned out to be the real sales booster, particularly after June 10 when the temperature coupled with humidity level touched new peaks all over the country. This was the time when the people flocked markets for split A/Cs and those stocks, which remained unsold during March, April and May, suddenly disappeared from the markets owing to rising demand, the executive said. He did not agree that the lifting of 150,000 units in just 10 days of this month would improve the annual output of split A/Cs this year as compared to the last year’s 350,000 units.
“This year the demand or sales of A/Cs will remain the same of 350,000 units because the market has sold the previous stocks lying idle for three months,” the executive said, adding that the market had actually taken a late take-off and even sales remained somewhat depressed in May this year as against “our expectations”.
Many market pundits are of strong opinion that if Chinese split A/Cs had not entered the market, the current boom in demand would have been different, as people could not afford Korean, Singapore and Malaysia assembled and imported A/Cs because of higher prices.
“Chinese split A/Cs have virtually captured 90 per cent of the market share,” the executive said. As a sizable number of people prefer to buy air-conditioners on cash basis, there are many who want to procure A/Cs through banks and leasing companies on consumer financing packages. Besides, many dealers have initiated their own schemes of selling air-conditioners and other domestic appliances on easy instalment basis.
Leading domestic appliances makers, traders and importers are now busy in importing split A/Cs from China in huge quantities. They place the orders to the Chinese supplies of goods who paste the names of famous brands of Pakistani companies in China. Many consumers think that A/Cs are being assembled in Pakistan when there is just one industry is engaged in the local assembly of split A/Cs.
Proprietor of Rizwan Electronics, Mohamamd Rizwan said that huge demand for split A/Cs had outstripped the supplies. The market is facing shortage of A/Cs these days. He said still a huge quantity of air-conditioners was being supplied from Karachi to Punjab to cope with the demand in the province.
However, he claimed that many companies had raised the prices of air-conditioners by Rs1,000-1,500 because of sudden demand. He was of the view that the demand for A/Cs would further go up in case the heat wave in the country intensifies.
People have now got the only option in shape of split A/Cs to beat the heat, as the local appliances makers have suspended the production of window A/Cs two years back owing to entry of cheap Chinese split A/Cs. Some leading companies, two years back, used to assemble 40,000-50,000 window A/Cs a year and the prices were ranging Rs20,000-25,000 a unit. Two years back, a split A/C of 1.5 tons used to cost over Rs40,000.
The air-conditioner market scenario has virtually changed in the last two years in favour of consumers, thanks to the entry of Chinese goods. All the leading players like Dawlance, Waves and PEL are now engaged in trading and distribution business by importing Chinese split A/Cs. These companies as well as other distributors and traders, who also import Chinese A/Cs, are now doing a roaring business.
