The European continent is currently grappling with an unprecedented heatwave, sparking a surge in demand for air conditioning units. Chinese-made air conditioners have emerged as a primary beneficiary of this trend, with some models becoming difficult to find in stock.
In response to this situation, several leading Chinese manufacturers, including Gree Electric Appliances,Inc.Of Zhuhai (ASX: 000651), Hisense, and TCL, have provided updates. Gree Electric Appliances,Inc.Of Zhuhai reported that installation schedules in some areas are now booked until the end of August, with terminal sales surging over 50%. Hisense stated it is intensifying localized research and development efforts, launching split-type air conditioners tailored for Europe. TCL responded by noting it has compressed its production cycle to 10 days and shifted logistics from sea freight to truck transport to improve efficiency.
Market Context of the Heatwave
Reports indicate that the period from June 23 to June 25, 2026, marked the hottest three-day span in France since 1947. On June 25 alone, 188 high-temperature records were broken, with temperatures in Pruniers, Indre, approaching 45°C.
Gree's Supply and Sales Update
Gree Electric Appliances,Inc.Of Zhuhai indicated that its regional channels are completely sold out, with overseas agents urgently replenishing stock to meet market demand and satisfy consumers' pressing need for cooling. Installation schedules in France have been extended to the end of August.
The company reported that for the first six months of this year, its terminal sales in France saw a significant year-on-year increase of over 50%, with market momentum continuing to rise. Current inventory levels in France, Spain, and Portugal are low. Gree Electric Appliances,Inc.Of Zhuhai has deployed a diversified range of cooling products designed for European housing layouts, installation conditions, and consumption habits. Among these, portable air conditioners, which require no installation and are plug-and-play, have sold out completely in regional channels due to their flexibility and strong adaptability, which align well with European usage scenarios. Agents are working to expedite restocking. Meanwhile, Gree's wall-mounted units, known for energy efficiency, quiet operation, and durability, continue to receive strong recognition from European users, with terminal orders consistently at full capacity.
Hisense's Localized Strategy
Hisense Group stated it has launched easy-to-install and easy-to-clean split-type air conditioners for the European market and plans to introduce new high-efficiency, smart premium models in Europe this year.
Hisense reported that from January to June, its air conditioner sales in Western Europe grew by over 20% year-on-year, with the French market showing particularly impressive growth exceeding 100%. Additionally, Hisense's portable air conditioners have been consistently selling out in multiple European countries including Italy and Spain, creating a scenario where units are hard to come by.
Wei Chi, European Regional Marketing Manager at Hisense Global Marketing Center, noted that the heat arrived late this year in Europe, with a sudden intense spike in the past half-month directly causing tight supplies of portable air conditioners in Italy, the Czech Republic, Poland, and elsewhere. In response, the company is both reallocating stock across European regions and placing rush orders.
Wei Chi added that Hisense is increasing its localized R&D efforts to meet diverse consumer demands globally. Its innovative window and portable units have been well-received in North America. For Europe, it introduced the split-type models. For instance, the new Uni series platform is designed to balance performance, efficiency, and ease of installation and maintenance, simplifying the installation process. Furthermore, the high-efficiency, smart premium model Air Master (U8) launched in Europe this year meets local consumer demand for high-end products and supports the Hisense brand's overseas development.
TCL's Production and Logistics Adjustments
TCL stated that acceptance of Chinese brands among Europe's younger demographic is gradually increasing. It has significantly improved its production cycle, compressing it from the usual 30-40 days down to 10 days. Its logistics methods have shifted from sea and rail freight to palletized truck transport directly from China to Europe.
On June 29, a TCL representative responded that from January to June 2026, orders for TCL air conditioners in Europe increased 68% year-on-year, with shipments rising 62%. Orders for its two main categories, household portable air conditioners and inverter split-type air conditioners, surged over 90%, far exceeding the industry average growth rate.
TCL noted that Italy and Spain are the single largest markets in Europe by air conditioning capacity. In absolute terms, sales in Spain and Italy remain high. The company has felt a sharp spike in demand for portable air conditioners and very stringent market requirements for delivery times, leading to the compression of the production cycle to 10 days. The logistics approach has been adjusted to direct truck transport from China.
TCL also commented that European consumers are relatively conservative with high brand loyalty, giving traditional Japanese brands a first-mover advantage. However, acceptance of Chinese brands among younger European groups is gradually improving, particularly as major e-commerce platforms expand their presence in Europe, enhancing logistics efficiency and expanding sales channels for Chinese brands.
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