Mitsubishi Electric Corp. said Thursday it will invest 26.7 billion yen ($200 million) to establish its first plant in India to produce room air conditioners in a bid to tap into its increasing population and economic growth.
The Japanese company will build a plant with an annual capacity of 300,000 units in Tamil Nadu, southern India, and aims to start production in October 2025. The company will also make 650,000 compressors a year at the plant.
The new factory is part of the company's five-year business plan through March 2026, under which Mitsubishi Electric plans to invest some 180 billion yen in its air conditioner-related businesses worldwide, including in the United States and Europe.
In the air conditioner market, demand to replace older air conditioning systems with newer models is expected to grow in line with consumers shifting to energy-saving products, the company said.
Mitsubishi Electric entered the Indian air conditioning and refrigeration systems market in 2010.