How many air conditioners are sold in India in a year?

Consulting

medium20 min0 submissions

Scenario

A durables client wants a sense of the market before commissioning real research. India's population is about 140 crore (1.4 billion), roughly 30 crore households.

Your task

Estimate annual AC unit sales in India. Separate first-time buyers from replacement demand, and say which of your assumptions the answer is most sensitive to.

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How you'll be graded

100 points, 60% to pass.

structure30
arithmetic20
assumptions30
sanity check20

Hint

Reveal suggested structure

Two independent streams that must be added, not confused: new penetration (households crossing the income threshold each year × units per household) and replacement (installed base ÷ average life). Candidates who model only penetration understate badly once the installed base is large. Segment households by income band and by climate zone — an AC is near-compulsory in Delhi and optional in Bengaluru.