Mitsubishi Electric Expands Manufacturing Presence in India with New Air Conditioner and Compressor Plant in Chennai!
Mitsubishi Electric India has inaugurated a new air conditioner and compressor manufacturing facility in Chennai, Tamil Nadu, marking a significant milestone in the company’s long-term growth strategy for the Indian market. The new plant represents a major expansion of Mitsubishi Electric’s local manufacturing capabilities and reinforces its commitment to strengthening India’s industrial ecosystem through localisation, technology transfer and sustainable production practices.
The facility was inaugurated through a virtual plaque unveiling by the Hon’ble Chief Minister of Tamil Nadu, M.K. Stalin, in the presence of the Hon’ble Consul General of Japan, Muneo Takahashi. The event highlighted the strong collaboration between India and Japan in advancing high-quality manufacturing and industrial development.
Developed with an investment of approximately ₹2,100 crore, the Chennai manufacturing unit is Mitsubishi Electric India’s second production facility in the country within a span of just two years. It follows the commissioning of the company’s Factory Automation Systems plant in Pune in 2023 and coincides with Mitsubishi Electric’s 15 years of operations in India. Together, these investments signal the company’s long-term intent to deepen its manufacturing footprint and support India’s transition into a global manufacturing hub.
Spread across an expansive 210,000 square metres, the Chennai facility has been designed to manufacture both room air conditioners and compressors at scale. Once fully operational, the plant will have an annual production capacity of 300,000 indoor and outdoor air conditioning units and 650,000 compressor units. The project is expected to generate more than 2,100 direct and indirect employment opportunities, contributing meaningfully to regional economic development and skill creation.
A key focus of the new facility is localisation. By enabling domestic manufacturing of air conditioners and compressors—products that have historically depended on imports—Mitsubishi Electric India aims to reduce reliance on overseas supply chains and strengthen India’s self-reliance in HVAC manufacturing. The initiative aligns closely with the Government of India’s “Make in India” programme, supporting the development of a resilient, technology-driven and globally competitive manufacturing ecosystem.
In addition to capacity expansion, the plant is expected to strengthen the local supplier network by increasing sourcing from domestic vendors and encouraging capability development among Indian component manufacturers. Mitsubishi Electric plans to support this effort through technical collaboration, training programmes and adherence to global quality benchmarks, helping local partners upgrade their manufacturing and process standards.
Sustainability and energy efficiency have been embedded into the design and operation of the Chennai facility. The locally manufactured products are engineered to comply with evolving energy-efficiency norms and are expected to support India’s climate and sustainability objectives, particularly as demand for cooling solutions grows across residential, commercial and industrial segments. The plant incorporates Mitsubishi Electric’s Japanese manufacturing principles, combining precision engineering with digitally enabled, data-driven processes to ensure consistent quality, safety and operational efficiency.
With the inauguration of the Chennai plant, Mitsubishi Electric India has significantly strengthened its position in the Indian HVAC market. The facility not only enhances domestic manufacturing capability but also reflects the company’s broader vision of supporting India’s industrial growth through advanced technology, skilled employment and sustainable manufacturing practices.
