Japanese air conditioning giant Daikin has announced plans to double its production capacity in the country by 2030. The company’s ambitious vision: make India its largest manufacturing hub worldwide, driving both domestic growth and exports to over 100 countries.
Daikin has already invested ₹2,800 crore in India and is now gearing up to double its annual residential AC production from 1.5 million to 3 million units by 2030. This expansion is part of a broader strategy to capture the explosive growth in India’s cooling market, where AC penetration remains low at just 7% but is poised for a dramatic rise as incomes grow and urbanization accelerates.
Daikin’s vision goes far beyond serving Indian consumers. The company is leveraging India’s cost-effective manufacturing ecosystem to boost exports, aiming to supply air conditioners to Africa, the Middle East, South America, and beyond by 2026. Its new Sri City facility Daikin’s largest in Southeast Asia already produces key components like compressors and is central to this export push.
By 2030, Daikin expects to triple the volume of “Made in India” products shipped abroad, positioning the country as a critical node in its global supply chain. The company plans to raise localization levels to 75%, further strengthening India’s role as a manufacturing and R&D hub.
A key pillar of Daikin’s growth strategy is expanding into India’s tier 2 and 3 cities, where demand is surging as aspirations rise. The company is investing in distribution, service infrastructure, and easy financing options to make ACs accessible from Kashmir to Kanyakumari. Already, Daikin commands an 18-19% share of the residential market and over 60% in commercial VRV systems.
Daikin is among the biggest investors in India’s Production Linked Incentive (PLI) scheme for AC components, which incentivizes domestic manufacturing and innovation. The company’s new plants are built to the highest sustainability standards, and initiatives like the Daikin Green Exchange Programme encourage customers to upgrade to energy-efficient models, supporting both affordability and environmental goals.
Beyond air conditioning, Daikin is expanding its commercial refrigeration business, tapping into India’s growing demand for frozen food and cold chain logistics. This segment is expected to reach ₹10 billion in annual revenue by 2030, further diversifying Daikin’s India portfolio.
