AUTO EXPO - A FANTASTIC SHOW, THAT'S IT!

By Ruma Dubey

When Dubai won the Expo 2020, there were major celebrations and congratulations. It looked as though the whole country was jubilant, almost as though it has won the mandate for Olympics. One could not fathom the reason for so much enthusiasm.

But now when we see the euphoria around just one such expo is India, the Auto Expo, which started today in New Delhi, the joy of Dubai comes into perspective. The Indian Auto Expo is being looked upon as the event which could shape the auto industry of the country this year and ahead; with some 70 new car models expected to be launched, expectations are immense. If this one auto show could build hopes, surely an Expo which has the entire world participating means a direct spike up in economic activity, building up to the event.  

In good times, Expos are just another thing but when the chips are down, Expos hold more relevance as it helps promote a national identity, spur industrial progress and when held on a world stage, becomes a unique platform for international dialogue, for public diplomacy and for international cooperation. And that explains why so much hinges on the Auto Expo in Delhi and more so in Dubai 2020.

In India, today is a big day for its automobile sector.  The first two days of the expo to be held from February 5-11 has been reserved for media and entry for general public will open from February 7, to end on 11th. In this 12th edition of the expo, 70 new models are being launched of which 26 are global offerings. It is hoped that this show will revive the sluggish demand.

The state of the auto sector currently is not very optimistic. The industry produced a total 1,734,593 vehicles including passenger vehicles, commercial vehicles, three wheelers and two wheelers in December 2013 as against 1,698,107 in December 2012, registering a growth of 2.15% over the same month last year. The growth continues to be on account of growth in two wheelers production. overall domestic sales during April-December 2013 grew marginally by 2.30 percent over the same period last year. Again this is because of growth in two wheelers sales. Sales of Passenger Vehicles showed a degrowth of 5.72%, Commercial vehicles also registered a de-growth but much higher at -18.38%. The Society of Indian Automobile Manufacturers predicts local car sales could fall again this year.

Those in the industry say that there is a lot of pent up demand in the country and this expo could probably let loose that demand. But that is indeed being too optimistic as nothing can wish away hard-hitting ground realities of rising inflation, falling value of rupee, formidable cost of petrol, higher interest rates and an overall sense of ‘down’. It looks like people would currently rather sit on the cash than spend it – that is the amount of uncertainty. Things are surely better than 2013 but we are not yet out-of-the-woods.

The Indian auto sector, instead of sitting this out like a coward has decided to face the slowdown, head-on. It is using the opportunity of this slowdown to increase bets on India with increased investments and more new models; they hope to cash-in on the recovery curve. Most global car makers remain extremely optimistic about India and expect it to become the third largest car maker in the world by 2020. Thus given the significance of India on the world auto map in the future, every global auto company worth its name in salt wants to have a footprint in India.

This Auto expo, too like last year is about small cars, known as ‘small hatchbacks’ will rule the roost with many launches scheduled in this category. Well, having said all this, does this mean that the Auto Expo will miraculously spur on the auto sector; will people suddenly give in to their pent-up demand and start buying? No, that is most certainly not likely to happen. People will visit the expo in droves, given the glitz and glamour it now attracts. But that’s it – it will be a curiosity factor, a show which will not loosen any purse strings or spur demand. For that to happen, things on the economic front have to first change and that will take some time. Yet for all its worth, enjoy the show!

Cars/bikes to look forward to at the expo:

• Tata Motors hatchback, codenamed F4 and also a compact sedan, F5.
• Maruti’s Celerio hatchback, an unnamed concept sedan and SUV.
• Ford’s new hatchback concept car
• Nissan’s low-cost prototype, to compete with Alto, under Datsun brand will be launched
• Nissan’s two vehicles which will be launched this year – Go hatchback and Go+ minivan
• Honda’s new verison of Jazz hatchback, crossover concept car Honda Vision XS1 and Mobilio minivan. 
• Renault SA will showcase its Lodgy model, a minivan.
• General Motors new Chevrolet Beat hatchback and the Chevrolet Adra Concept SUV 
• Mercedes Benz will unveil the AMG version of its CLA sedan, concept of the GLA compact SUV and its F1 podium car, driven by Nico Rosberg.
• BMW will showcase its visionary 'i' concept vehicles
• Audi will unveil Audi A3 Sedan and RS 7 sports car
• Harley Davidson will unveil the Street 750 bike 
• Hero Motocorp's 600 cc Hastur sportsbike concept will make its global debut at the expo
• Bajaj Auto’s two different versions of the Pulsar 400 - Super Sports and Sports tourer