In the past two years, China’s exports of air conditioners to India have declined, due to India’s tariff barriers and the pandemic. Under the protection policy of the domestic industry, the Indian government has raised the tariffs for air conditioners and compressors and also plans to further increase them to 20% by 2025.
In this context, Chinese air conditioner and compressor manufacturers have begun to change their strategies, shifting from exporting products to investing in India and setting up local factories, mainly driven by the Indian government’s policy of attracting foreign investments.