Auto Expo 2014, scheduled for February 7 to 11, is likely to be a subdued affair. With the economic downturn and falling sales, automobile companies are unlikely to plan extravagant promotions for their new launches at the event.
A company’s budget will depend on the space rental, the cost involved in setting up a booth, and what vehicle models it wants to put up for the show.
Considering the economic circumstances, the three major organisers — Confederation of Indian Industry, Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA) — are also looking to curb ‘unnecessary expenditures’, one of the organisers said.
Jnaneswar Sen, Senior Vice-President, Marketing and Sales, Honda Cars India, said:
“The rental is similar to last time. The budget will also depend on the eye-candies (car models) one gets from abroad (which could be expensive) in terms of logistics.”
However, it will all depend on whether individual manufacturers want to scale down the budget or not, he was quick to stress.
General Motors India plans to have a smaller stall this time.
“The company will not show case Tavera and Spark models this time. It will showcase only the new Sail (both sedan and hatchback), Enjoy and new Beat, apart from global icons like Corvette and Camaro,” a source close to the development told Business Line .
The company is also unlikely to put up a vintage cars show, which it did in the previous years, the source added.
Many international players, especially luxury carmakers, get their own materials to be put up in the halls or hangers.
This time around, they might have to spend more on logistics because the venue has been moved farther.
According to analysts, the expo is a big event for companies planning new launches. For instance, many players unveiled utility vehicles for the market in the previous expo (2012), which are still being launched.
“But, this year being crucial for the companies, there might be a slight curtailment of investment by them,” said Surjit Arora, auto analyst at Prabhudas Lilladher. However, he also said international players, especially new entrants like Datsun, Nissan, Triumph and Isuzu, are expected to do a better show, trying to make an impact for their long-term plans in India.
Puneet Gupta, Principal Analyst at I.H.S Automotive, expects many displays for the new trends, such as small sports utility vehicles. However, in terms of budget, the carmakers may “have some constraints this time,” he pointed out.
Upbeat on show However, many companies are also upbeat and said Auto Expo 2014 is likely to be better than its predecessors.
“We are hopeful that the new venue will be able to gain popularity and will be a perfect display of the industry’s showpieces. We will be providing a lot of exciting products and innovations for the customers and brand enthusiasts to look forward to,” said Eberhard Kern, MD and CEO of Mercedes-Benz India.
The country’s largest passenger carmaker, Maruti Suzuki India, also said Auto Expo this time will be just as important to the company.
“As a market leader, we have always presented a great experience to visitors.
“This year too our effort will continue to be to delight visitors and showcase the company’s strengths,” said a Maruti spokesperson.
New experiences The upcoming event will offer many new experiences, said SIAM, adding the Delhi expo is treated as an ‘A Class’ show worldwide like motor shows in Frankfurt, Tokyo and Detroit.
There will be 48,000 sq metres of exhibition space with 14 halls. The new venue is providing a 30 per cent increase in display space.
SIAM expects around 75,000 visitors every day during the five-day event, Sugato Sen, Deputy Director-General of the organisation, told Business Line .
To streamline the traffic, there will be dedicated lanes on the Noida Expressway. Free shuttle buses from select Metro stations in Noida and various locations in Delhi will also be provided, Sen said.
The biannual Auto Expo has been held in Delhi since 1986. This time around, it will be held at dual venues, the second being at Greater Noida.