On January 12, 2023, Mitsubishi Electric announced that it will invest some ¥26.7 billion (about US$ 222.5 million), in its subsidiary company Mitsubishi Electric India to establish a factory for the production of room air conditioners (RACs) and compressors in India. Local production, targeted to start in October 2025, is expected to help the company meet growing demand in the Indian market. Initial annual capacity will total 300,000 RAC outdoor units, then beginning in December 2025, 650,000 compressors.