Being driven by the rising vehicle production, increasing consumer demand for comfort, and technological advancements like improved air filtration, with projections hitting around $2 billion, fuelled by passenger cars and growing EV adoption; the Indian Automotive HVAC Market is expected to witness a strong growth in 2026.
According to a recent report published by Allied Market Research, the Indian automotive HVAC market size is projected to reach $2,033.1 million by 2026. The report finds that the passenger car segment dominates the India automotive HVAC market, followed by light commercial vehicle, and heavy commercial vehicle. Also, the factors such as growth in the Indian automotive industry, rise in demand for thermal comfort, and increase in safety due to adoption of HVAC systems are expected to boost the growth of the Indian automotive HVAC market.
Although, high maintenance cost of HVAC system restrains the growth of the market, adoption of eco-friendly refrigerants and production of cheaper HVAC systems will continue to provide lucrative growth opportunities for the players operating in the Indian automotive HVAC market.
Indian automotive air conditioner manufacturers have been actively focusing on and transitioning to greener, low-Global Warming Potential (GWP) refrigerants, a trend driven by global environmental regulations and domestic policies. This shift, which is already underway, will continue through 2026.
Beside others, the ICAP (India Cooling Action Plan) provides a strategic roadmap for sustainable cooling across various sectors, including transport refrigeration, and encourages the adoption of low-GWP and energy-efficient technologies, continued development along those guidelines will make the Indian automotive HVAC industry more sustainable. There will be a noticeable increase in vehicles equipped with R-1234yf or other greener alternatives as manufacturers align with upcoming regulations and global trends.
Major players in the Indian automotive HVAC market, such as Subros Limited, MAHLE Anand Thermal Systems, and Sanden Vikas (India) Ltd., will remain involved in this shift as the adoption of eco-friendly refrigerants is seen as a significant growth opportunity.
Pravita Iyer
Publisher & Director
