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.
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.
100 points, 60% to pass.
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.