Mitsubishi Electric to Build Plant in India for Room Air Conditioners and A/C Equipment Compressors

Rhea-AI Summary

Mitsubishi Electric Corporation is investing 26.7 billion yen (approx. $222.5 million) in its subsidiary, Mitsubishi Electric India Pvt. Ltd., to build a factory for air conditioners and compressors in India.

Production is set to start by October 2025, with an initial capacity of 300,000 outdoor units and 650,000 compressors by December 2025. This move aligns with the company's Advance & Innovation 2025 strategy, targeting sales of 1.26 trillion yen by March 2026.

Positive

• Investment of 26.7 billion yen in Indian production will enhance operational capacity.
• Expected initial production capacity of 300,000 outdoor units supports demand.
• Long-term strategy targets significant sales and profit growth by March 2026.

Negative

• None.

 Expanding production in key growth areas to grow A/C and refrigeration businesses

TOKYO--(BUSINESS WIRE)-- Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it 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 for the production of room air conditioners and compressors in India. Local production, targeted to start in October 2025, 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 demand to replace older air conditioning and refrigeration systems with newer models is expected to continue growing as consumers and companies shift to energy-saving and low-GWP refrigerants. Mitsubishi Electric’s Advance & Innovation 2025 strategy, introduced in November 2021, is targeting sales of air conditioning and refrigeration systems worth 1.26 trillion yen (about U.S.$ 10.5 billion) and operating profit of 12% by the fiscal year ending March 2026. 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 a five-year period ending in March 2026.

For the full text, please visit: www.MitsubishiElectric.com/news/

View source version on businesswire.com: https://www.businesswire.com/news/home/20230110005470/en/

Customer Inquiries

Overseas Air-Conditioning & Refrigeration Systems Div.

Global Strategy & Business Planning Department

Mitsubishi Electric Corporation

www.MitsubishiElectric.com/bu/air-conditioning-systems/

www.MitsubishiElectric.com/

Media Inquiries

Takeyoshi Komatsu

Public Relations Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2346

prd.gnews@nk.MitsubishiElectric.co.jp

www.MitsubishiElectric.com/news/

Source: Mitsubishi Electric Corporation

FAQ

What is Mitsubishi Electric's investment in India for?

Mitsubishi Electric is investing 26.7 billion yen to build a factory for air conditioners and compressors in India.

When will Mitsubishi Electric's new factory in India start production?

Production at the new factory in India is expected to start in October 2025.

What is the expected production capacity at the new factory in India?

The factory will initially produce 300,000 outdoor units and 650,000 compressors annually.

What are Mitsubishi Electric's sales targets under the Advance & Innovation 2025 strategy?

The company aims for air conditioning and refrigeration system sales of 1.26 trillion yen by March 2026.