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Air conditioner sales to rise in 2009 as prices fall

By Zheng Lifei (chinadaily.com.cn)
Updated: 2009-02-25 14:39

Sales of air conditioners in China are expected to reach 28 million units this year while prices are likely to fall as much as 30 percent after rising for five consecutive years, a top home appliance retailer forecast.

Related readings:  Air conditioner firms may face anti-dumping probe  Suning Appliance on expansion spree  Suning to sell 73m shares

The price will fall to the same level recorded in 2004, dragged lower by plunging raw material costs in recent months caused by the global financial crisis, according to a report released by Suning Appliance, a major home appliance retailer chain in China.

Falling prices and the government program to subsidize farmers' purchases of home appliances are likely to boost demand for air conditioners this year, the report said.

The subsidy program, under which farmers can buy air conditioners, TVs, refrigerators, washing machines, mobile phones and other selected appliances at a discount, will result in the sale of one million air conditioners, Suning said in the report.