Demand for Chinese portable air conditioners surges across Europe amid scorching heat

As heat records shattered across Europe in the last weeks of June and indoor temperatures rose to uncomfortable levels, many of the continent’s residents sought immediate relief in the form of portable air conditioner units, Bloomberg writes.

Rising consumer appetite for such units, which can be installed almost instantly and are cheaper than the traditional split inverter units that are more common in the US and Asia, is providing earnings tailwinds for Chinese appliance giants including Midea Group Co., Haier Smart Home Co. and Gree Electric Appliances Inc.

While welcome, stronger European demand is “unlikely to fully offset weaker sales in China, which remains the largest revenue market,” said Bloomberg Intelligence’s Elaine Lai.

Chinese appliance makers continue to face challenges including a stubbornly weak consumer market back in China, lower domestic subsidies and rising commodity costs.