Mitsubishi Electric to set up a factory in India for air conditioners and compressors

The company is accelerating its launch of high-performance, energy-saving and environmentally friendly products to offer natural refrigerants that meet local needs and expand production for a stable product supply.

Mitsubishi Electric’s Advance & Innovation 2025 strategy, introduced in November 2021, targets sales of air conditioning and refrigeration systems worth 1.26 trillion yen (about U.S.$ 10.5 billion) and an operating profit of 12 percent by the fiscal year ending March 2026.

Mitsubishi Electric Corporation will invest some 26.7 billion yen (about U.S.$ 222.5 million), in its subsidiary company Mitsubishi Electric India Pvt. Ltd., to establish a factory to produce room air conditioners and compressors in India. Targeted to start in October 2025, local production is expected to help the company meet growing demand in the Indian market. Initial annual capacity will total 300,000 room air conditioner outdoor units and, beginning in December 2025, 650,000 compressors.

The new 88,000 sq. mtr. factory will be built on a 210,000 sq. mtr. site in Tamil Nadu in southern India. The facility is expected to strongly support Mitsubishi Electric’s stable product supply as the Indian market continues to grow due to its increasing population and expanding economy. It also will strengthen development capabilities to meet local demands and provide product lifecycle solutions incorporating air conditioning and refrigeration equipment.

The demand to replace older air conditioning and refrigeration systems with newer models is expected to grow as consumers and companies  shift to energy-saving and low-GWP refrigerants. Under the strategy, the company is accelerating its launch of high-performance, energy-saving and environmentally friendly products in order to offer natural refrigerants that meet local needs, expand production for stable product supply and shorter lead times, and introduce lifecycle solutions encompassing sales, service, facility management and product recycling. Mitsubishi Electric expects to invest some 180 billion yen (about U.S.$ 1.5 billion) in related facilities worldwide, including Europe and the United States, over five years ending in March 2026.

The factory will implement various initiatives for carbon neutrality, including minimising carbon dioxide emissions through enhanced thermal insulation and using highly efficient air conditioning, heated-water systems, and LED lighting. Furthermore, it will meet sustainable development goals  (SDGs) by reusing wastewater through underground filtration treatment and site greening.

Mitsubishi Electric’s air conditioning and refrigeration systems business in India began with the establishment of Mitsubishi Electric India Pvt. Ltd. to start importing and selling products in 2010. After that, the company grew the business by expanding its sales channels and establishing a market position as a premium brand supplying a wide variety of high-quality, high-performance products.