LG aims to maintain lead in inverter AC segment

South Korean consumer electronics major LG is expecting to maintain its lead in the inverter air-conditioner this season and to grow its consumer base further in the segment, said a top official. The company presently has 53 per cent market share in the segment and targets to grow its base, which is expected to be more than double in 2018. "In the overall AC market, we have 20 per cent market share and in the inverter AC, we have 53 per cent," said LG Electronics India Business Head-RAC Vijay Babu, adding "We would maintain that ration this season". He further in 2018, the inverter AC market is expected to be around 3.1 million units with a growth of 116 per cent. Like other manufacturers, LG Electronics has also increased prices of its AC units to follow the new ISEER Ratings (Indian Seasonal Energy Efficiency Ratio) but expects that it would not affect the sales. "We have increased our prices by 10 per cent," said Babu, adding that "if you give right and futuristic product to the Indian consumer, then nothing would happen." This season, LG Electronics India has line up of 59 new inverter AC Split models ranging between Rs 42,000 to Rs 64,000. "We have started 100 per cent inverter transition last year and we have successfully done it and we are completely giving a new thing to the customer this year," he added. LG has also introduced window inverter air conditioner, which are popular in the non metro markets. Besides, LG is also providing easy finance options to its consumers and has tied up with several financial institutions as Bajaj Capital etc. The company has also started selling air-conditioners online through its channel partners such as Amazon and Flipkart, he added. The company has two manufacturing units in Greater Noida and Pune with a manufacturing capacity of 1.4 million units per year.

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