Atsushi Takase, Managing Director, Mitsubishi Electric India
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Mitsubishi Electric India, a global player in electrical and electronic equipment, has expanded its manufacturing footprint with a ₹2,100-crore investment near Chennai in Tamil Nadu to manufacture room air conditioners and compressors. This is the company’s second manufacturing facility in India within two years, after commissioning its Factory Automation Systems plant in Pune in 2023. The Chennai facility will have an annual capacity of 300,000 AC and 650,000 compressor units. Atsushi Takase, Managing Director, Mitsubishi Electric India, said the new facility will boost localisation and company’s India operations. “We were importing ACs, and will now manuafacture in Chennai,” he told businessline.
Edited excerpts:
How will this facility boost Mitsubishi Electric’s presence in India?
Local production of room air conditioners will ensure shorter delivery timelines, supply stability and improved market responsiveness — all critical in a highly seasonal category like air conditioning. It will also enable closer alignment with local customer needs, regulatory requirements and market feedback. Beyond business impact, the facility is expected to create over 2,100 direct and indirect employment opportunities.
Prior to this, the ACs were imported, right?
Yes. Mitsubishi Electric air conditioners for the Indian market were primarily manufactured at the company’s plants in Thailand and Japan. The move towards local manufacturing reflects our strategy to strengthen supply stability, shorten lead time and enhance responsiveness to the Indian market.
Can you give details of your operations in India?
We have been operating in India for over two decades, with air-conditioner sales beginning in 1999 and the establishment of an integrated sales company in 2010. While we do not disclose business-wise production or sales volumes, Mitsubishi Electric India’s total revenue is around ₹4,200 crore. With the commissioning of the new manufacturing facility, we are transitioning towards increased localisation to support future growth. Local manufacturing also allows us to better align products with Indian conditions and evolving regulatory requirements, including energy-efficiency norms.
Is the projects from the new facility meant only for India or exports as well?
In the current phase, the facility is primarily dedicated to the Indian market, reflecting strong and sustained domestic demand for air-conditioning products. India is a large, fast-evolving market with unique climatic conditions, consumer preferences and regulatory requirements, and the facility has been designed to respond effectively to these needs.
Which segments does Mitsubishi Electric address in India, and what is the market size?
We address both residential and commercial air-conditioning segments, including room air conditioners. India represents a large and rapidly expanding opportunity. According to the Japan Refrigeration and Air Conditioning Industry Association, India’s air-conditioning market — covering residential and commercial segments — reached about 11.9 million units in 2024, surpassing Japan’s market of around 10 million units.
What does the future look like for Mitsubishi Electric in India’s AC market?
As India continues its strong economic growth, the air-conditioning market is sustaining double-digit growth. Under this favourable environment, Mitsubishi Electric expects its air-conditioning business in India to achieve a double-digit CAGR between FY2025 and FY2030. India is positioned as a strategic priority market for us, alongside Europe and the Americas.
Published on February 6, 2026
