Mitsubishi Electric Corporation (MEC) plans to invest about $222.5 million to establish a factory in Tamil Nadu for the production of room air conditioners and compressors. It will build an 88,000 sq m factory in the southern State, and the unit is expected to commence production in October 2025. The new unit will have an initial annual capacity of 300,000 outdoor room air conditioner units and 650,000 compressors.
This new capacity addition is expected to help the company meet growing volumes in the Indian market. Also, it will strengthen development capabilities to meet local demands and provide product lifecycle solutions incorporating air conditioning and refrigeration equipment.
The company believes that 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 (global warming potential) refrigerants.
Under its Advance and Innovation 2025 strategy, MEC is accelerating its launch of high-performance, energy-saving, and environmentally friendly products 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 $1.5 billion in related facilities worldwide, including in Europe and the US, over a five-year period ending in March 2026.