Household air conditioner prices in Japan are set to increase by as much as 30 percent as manufacturers respond to stricter energy efficiency standards and rising raw material costs exacerbated by geopolitical tensions in the Middle East. The new pricing will take effect primarily with product launches scheduled for March.
Daikin Industries Ltd, the country’s largest air conditioner maker, announced plans to raise prices of models compliant with the upcoming standards by approximately 20 to 30 percent. Retail prices for smaller units suitable for rooms of just over 9 square meters currently range from 120,000 to 180,000 yen at Tokyo retailers. Following the hikes, consumers can expect to pay an additional 20,000 to 50,000 yen for such units.
The new energy efficiency requirements, which take effect in spring, necessitate significant product upgrades, including larger heat exchangers and more efficient compressors. While these enhancements will increase upfront costs, manufacturers emphasize that the improved models will reduce monthly electricity expenses for consumers.
In addition to regulatory pressures, rising prices for key raw materials such as naphtha, aluminum, and copper are contributing to higher manufacturing costs. These materials’ prices have been affected by escalating instability in the Middle East. Bosch Home Comfort Japan Inc, which markets Hitachi-brand air conditioners, plans to implement price increases of about 10,000 yen, and Toshiba Lifestyle Products & Services Corp anticipates raising prices between 10,000 and 40,000 yen starting this month.
Domestic shipments of household air conditioners in Japan rose sharply, increasing 22.5 percent year-over-year to 9.86 million units during the January-September period, according to the Japan Electrical Manufacturers’ Association. The surge in sales has been attributed to early purchases made in anticipation of higher prices, warmer than usual weather in early spring, and local government subsidies promoting energy efficiency.
Despite this current growth, industry experts express concern over a potential drop in demand next year. A representative from Mitsubishi Electric Corp projected that while domestic air conditioner sales may reach about 11 million units in 2023, volumes could decline by 2 million to 3 million units in 2024 as consumers adjust to increased costs and market saturation.