HomeBreaking NewsBosch AC Expansion Targets Double-Digit India Market Share

Bosch AC Expansion Targets Double-Digit India Market Share

Bosch Home Comfort Group is targeting a strong double-digit share of India’s air-conditioner market within two years as it prepares to launch Bosch-branded ACs and expands its Hitachi portfolio across residential and light-commercial segments, Managing Director Sanjay Sudhakaran said in an interview with PTI.

The German Bosch Group company is pursuing a dual-brand strategy in India, positioning Hitachi in the mainstream and mass-premium categories while placing Bosch in the performance-premium and super-premium segments. Bosch-branded air conditioners are planned for launch next year, with products expected to compete with premium brands such as O General and Mitsubishi Electric.

The company is also aiming to become one of India’s top five cooling and comfort brands in the medium term. Sudhakaran said the group expects to grow faster than the overall market, citing low penetration of room air conditioners, rising disposable incomes and economic growth as drivers of demand.

Bosch Home Comfort acquired Johnson Controls-Hitachi Air Conditioning’s global residential and light-commercial air-conditioning business in August 2025. Following the acquisition, it took over Hitachi’s air-conditioning operations in India and plans to refresh the portfolio while retaining Hitachi’s positioning as a specialist air-conditioning brand with Japanese engineering credentials.

The company plans to invest 80 million euros, or around Rs 900 crore, in India over the next few years. The investment will be used to expand manufacturing capacity, increase localisation, and strengthen engineering and testing capabilities. It will also support the company’s expansion into light-commercial products, including variable refrigerant flow systems under the Hitachi brand.

Bosch Home Comfort is manufacturing its latest Hitachi VRF products at its facility in Kadi, Gujarat. The plant currently has annual manufacturing capacity of more than 10 lakh air-conditioning units. The company has also expanded its global research and development centre in Ahmedabad to focus on light-commercial air-conditioning technologies.

The Kadi facility manufactures heat exchangers, indoor-unit moulds, condensing units, sheet-metal components, tubing and coils, and carries out painting operations. Around 75 per cent of the company’s procurement is sourced domestically, while imports account for approximately 25 per cent, according to Sudhakaran. He said the company would continue prioritising local manufacturing and backward integration to improve cost competitiveness.

Bosch Home Comfort may also explore a new manufacturing facility in southern India, although Sudhakaran did not confirm whether such a project was under consideration. The company has access to compressor supplies through a joint venture with a major global compressor manufacturer operating a plant in Ahmedabad.

The expansion will use Hitachi’s existing distribution and retail network, while Bosch-branded ACs may also be sold through Bosch and BSH-branded stores. Large-format retailers, regional retailers and online platforms will remain key channels. The company said it expected to create backend synergies across sales, service, manufacturing, research and development, product development, supply chains and human resources while maintaining different product positioning for the two brands.


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