Europe heatwave, Indian AC manufacturers, air conditioner exports, Production Linked Incentive (PLI) scheme, Europe cooling demand, and India manufacturing are gaining attention as rising temperatures across Europe create new opportunities for India's air-conditioner industry. While manufacturers are exploring the fast-growing European market, industry experts believe large-scale exports are unlikely before 2027 due to stringent regulatory and product requirements.

The growing interest follows an unprecedented rise in cooling demand across Europe, where prolonged heatwaves have significantly boosted sales and enquiries for air-conditioning systems. According to the World Health Organization (WHO), more than 1,300 excess deaths have been recorded since June 21 due to extreme temperatures. WHO Director-General Tedros Adhanom Ghebreyesus has described Europe as the world's fastest-warming continent, with temperatures increasing at nearly twice the global average.

Recognising the opportunity, the Indian government is encouraging domestic manufacturers to build export capacity. Union Ministers Piyush Goyal and Ashwini Vaishnaw have reportedly urged the industry to expand overseas shipments, viewing air-conditioner manufacturing as a high-value export sector similar to India's successful smartphone production ecosystem. Air conditioners are also the only white-goods segment currently covered under India's Production Linked Incentive (PLI) scheme, providing additional policy support for the industry.

Despite the growing demand, manufacturers say entering the European market will require substantial preparation. Companies must obtain CE certification, comply with strict energy-efficiency standards, eco-design regulations and product-quality norms before commercial exports can begin.

Industry executives also point out that products will need significant redesigns to suit European conditions. Unlike India, where conventional split air conditioners dominate, nearly 80% of residential cooling systems in Europe are heat-pump air conditioners that provide both cooling and heating. In addition, many European buildings, particularly heritage structures, impose restrictions on installing external air-conditioning units, requiring customised installation solutions.

Executives from companies including Godrej Enterprises Group and Amber Enterprises have indicated that while plans to enter Europe are progressing, commercial launches are likely to begin only after meeting regulatory requirements, with exports expected from 2027 onward.

Indian manufacturers will also face stiff competition from well-established Chinese, South Korean and Japanese brands such as Midea, Gree, Haier, Daikin, and LG, which already have a strong market presence and are estimated to enjoy a cost advantage over Indian producers.