In one of the concalls/tv interviews of mgmt of one of the above companies I heard the argument against this which is something like – Since the demand and manufacturing is more in 2 quarters and not year around, this will reduce efficiency/utilisation of manufacturing plants of AC OEMs in low demand periods since they cant use it for other products/purposes. But with suppliers (who work on multiple products, not just ACs) they can utilise their capacity for other products manufacturing hence giving better efficiency/utilisation. As a result OEMs will still largely depend on suppliers for AC manufacturing.
I think that makes sense.
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