Haier Targets Big Festive Growth in India After GST Rate Cut

Haier Appliances India, a leading appliance and consumer electronics manufacturer, is projecting a robust 25-30% growth in sales during the upcoming festive season, fueled by recent GST reductions on large-screen televisions and room air conditioners (RACs). NS Satish, President of Haier India, shared these insights in an interview with PTI, highlighting the company’s strategic plans to capitalize on the festive demand surge.

The Indian government recently slashed GST rates from 28% to 18% on TVs with screens larger than 32 inches and RACs, a move Satish described as “one of the boldest” to stimulate economic growth. This reform is expected to drive consumer demand, encouraging buyers to opt for larger screen sizes, such as upgrading from a 43-inch to a 55-inch TV or from a 55-inch to a 65-inch model. Satish projects a minimum 20-25% growth in the flat-panel TV segment alone, with overall festive sales across categories expected to rise by 25-30% during peak periods like Navratra.

To meet this demand, Haier India is rolling out new product launches, consumer-friendly EMI schemes, and cashback offers, supported by an aggressive marketing and branding campaign. The company is also ensuring a seamless transition to the new GST rates by instructing dealers to update maximum retail price (MRP) stickers starting September 22, 2025, and adjusting warehouse inventories accordingly.

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Satish emphasized that the GST reduction will accelerate Haier’s localization efforts under the ‘Make in India’ initiative. The company is investing ₹1,500 crore in its Greater Noida plant and is scouting land for a new factory in South India to cater to domestic and export markets. Increased consumption is expected to scale up production, fast-tracking these investments.

Additionally, Satish noted that India’s low RAC penetration rate of 11%, compared to 80-85% in developed countries, presents significant growth potential, especially with rising temperatures and government-backed Production Linked Incentive (PLI) schemes that reduce costs and enhance product quality.

India currently ranks as the fourth-largest market for China-based Haier Group Corporation. Satish is confident that with a projected sales revenue of USD 2 billion, India will climb to one of Haier’s top three global markets within the next 4-5 years.

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