The 10th edition of the Auto Expo in New Delhi will see more than 10 global launches and a slew of small and green car previews. For domestic automakers it has become a must-attend event. And an increasing number of international players also feel like they just can?t give it a miss anymore, even though the North American International Auto Show opens in Detroit immediately afterwards. In terms of sheer footfalls, the Delhi show leads the pack?staying definitely ahead of the big events at Shanghai and Frankfurt as well. Delhi is expecting 18 lakh visitors (up from 8 lakh in 2004) as compared with Detroit?s 7 lakh. The mood is upbeat here for a very simple reason: the market is growing. It grew even in a year that saw the American market, along with other mature markets, dip down. GM, which had been the world?s largest carmaker, filed for bankruptcy. Across the Pacific, Toyota posted a net loss for the first time in 70 years. Sure, the global economic downturn gave the domestic industry some sleepless nights. Sales declined for months before reentering the positive zone. In the first eight months of this fiscal, passenger cars saw a 21.1% uptick. The government also nudged things along, what with the Sixth Pay Commission and other fiscal incentives. Small cars defined the big trend?they already account for 70% of total sales?while rural markets held their own and more.
Component makers also took some disturbing hits early in 2009 and then started hearing good tidings, with the likes of Toyota, Ford and Hyundai affirming plans to make India a manufacturing hub for small cars. An interesting story on this front is that China is leading all international participants in the floor space booked for auto spare parts. Again, the explanation is very simple. A market that?s increasing in size will see competition heating up?something that should only benefit the Indian consumer. But before flying away on the wings of self-satisfaction, let?s note that even as Detroit now faces competition from the East, it will host more than 700 new cars on display and more than 30 global debuts! Let?s also note that the Delhi exhibition area leaves a lot to be desired. Its conferencing, display and other convention facilities are nothing to write home about. This is not a shallow concern but reflects larger organisational issues in the industry. Consider the electric cars and two-wheelers that will generate a lot of press at the show. How will these actually take off? There is no plan in place for networking even our metros with public points at which these green vehicles can be charged.
