‘Mobility for all’ - the theme of the 9th edition of the AutoExpo is all encompassing and it’s borne out by the ambitious agenda of the biennial event. The “centerfold” will undoubtedly be the unveiling of the ultimate people’s car, the Rs 1 lakh vehicle from Tata Motors that has already changed the world’s conceptions of affordable personal mobility even before its launch. Set to feature over a dozen new model launches, it promises to also showcase several new concept vehicles besides many specialised vehicles for the first time in India. In addition the show also features ‘focus pavilions’ with displays of advanced ‘infotronics’ (sophisticated electronics display and control systems), robotics, accessories, alternate fuels, garage equipment, tyres, other auto-components, design trends, etc.
There will also be courses and demonstrations on safe driving, safe riding, road safety, alternate fuels, engine technologies, robotics, etc. A series of business seminars and conferences on various subjects are also on the agenda. Diesel engines will be specially showcased, in a seminar where diesel manufacturers Mico-Bosch and Delphi will demonstrate that diesel is a green fuel. There will also be an ‘asli-naqli’ display, where the differences between fakes and originals are highlighted.Over the years, the biennial weeklong event being held at Delhi’s Pragati Maidan is expecting more than 10 lakh visitors and the fact that there is a daily lottery with a car as the prize surely adds to the enthusiasm. AE2008 will occupy a mammoth 120,000 square metres of space across the many halls of the maidan. That’s a near-doubling of the 2006 footprint (70,000 sq m.) and the joint organisers, SIAM (Society of Indian Automobile manufacturers), ACMA (Automotive Component Manufacturers Association) and apex body CII (Confederation of Indian Industry) have had to source 12 extra, prefab, temporary hangers from Germany to augment permanent pavilion space. They’ll need every inch. The International Association of Auto Manufacturers (OICA- Organisation Internationale des Construction d’Automobiles) confirms that this is the largest auto show in Asia and it features participation from 27 countries apart from the host. There are special country pavilions from Canada, China, France, Germany, Italy, Japan, Malaysia, Spain, Taiwan, UK and USA as well as displays by manufacturers from other countries. The foreign interest is not surprising, since India is one of the world’s bigger vehicle markets (with a 2006-7 turnover of about US$25 billion) and the second-fastest growing auto market after China with most segments seeing double-digit growth.
In two and three wheelers, it is the second-largest market in the world and also a big exporter. It is the fourth largest commercial vehicle (CV) market with over 3.9 lakh vehicles sold in 2005-06, the fifth largest bus market and the 11th largest passenger car market with over 1.4 million new vehicle sales. The auto-component industry generates another $15 billion in turnover and is also growing quickly and expected to hit $40 billion by 2014-15.
Taken together, by 2016, India will be the seventh-largest market in the world, with the auto industry generating over US $145 billion in turnover (almost Rs 600,000 crore) and by 2030, it will be the third largest (behind US and China). The auto sector’s share in India’s GDP is expected to increase to over 10 per cent by 2016 from between 3-4 per cent at present. It has the potential to provide direct and indirect employment to over 25 million people.
Many high-powered dele-gates such as those from JAMA (Japan Automobile Manufacturers Association), KAMA (Korea Automobile Manufacturers Association), SMMT, UK (Society of Vehicle Manufacturers & Traders) are making their first-ever visits to the AE2008. It’s expected that some-where between 12-15 new models will be unveiled for the first time in India. Several of these would be global launches. The Tata ‘people’s car’ is attracting the most interest. At a low basic cost of $2,500 and claimed fuel efficiency of 25 km/litre of petrol as well as low-emission, the 600 cc vehicle could transform the financial dynamics of the global four-wheeler market. It is certainly the reason why so many delegates from various foreign auto-associations are flying in. But apart from the Tata car, Volvo will be showing at least two new models in the luxury category. Mercedes is believed to be planning to release its new C class. Honda is showing its Civic Hybrid and maybe, the smaller Jazz. The Chevrolet Cativa and the Hyundai Santa Fe are expected to be launched in India and Caparo is displaying its two-seater sport car. Plus new releases from Renault, Skoda, Fiat and Volkswagen, among others, are expected. In the SUV range, apart from the Captiva, the iconic Hummer would be shown for the first time in India.In the two-wheeler cate-gory, Suzuki Motorcycles India will show several premium bikes in the 125-175 cc range. Honda Motorcycles India will also release at least two new bikes and probably a new scooter in the same capacity range. Yamaha is also expected to display premium bikes in the ‘super’ 1000 cc-plus category range.There will therefore be plenty for auto-enthusiasts to drool over. For example, Suzuki Maruti will show its A-Star concept, Ashok Leyland also has a concept on display and so does Yamaha.
Naturally, with so many top honchos and auto-specialists in the same space, there will be unparalleled opportunities for business networking. Industry experts believe that the deals struck at AE2008 could reach critical mass in many new areas. The B2B possibilities at AE2008 are immense. Apart from its large, fast-growing domestic market, India is already an export hub for global majors such as Hyundai and Suzuki. Local MNCs such as Bajaj, Mahindra, Hero and of course, the Tatas are also established brand names abroad and all of them are pushing hard to increase their global market share and penetration. There are already tie-ups such as Mahindra Nissan/Renault and Tata-Fiat. The scope for more such joint ventures will be explored.
The Indian auto components industry is a major exporter with 2005-6 exports hitting US$ 1.8 billion and growing at around 28 per cent - exports are expected to top $5 billion by 2008-9. Principal export items include replacement parts, tractor parts, motorcycle parts, piston rings, gaskets, engine valves, fuel pump nozzles, fuel injection parts, filter & filter elements, radiators, gears, leaf springs, brake assemblies & bearings, clutch facings, head lamps, auto bulbs & halogen bulbs, spark plugs and body parts. The Indian component industry is a global OEM (original equipment manufacturer) supplier to Fiat, GM, Daimler, Renault, Volvo, Toyota, BMW and Volkswagen among others. Many foreign majors such as Suzuki, Honda, Delphi, Caterpillar, Bosch, Ford, GM and Honda have established design centres in India.
All three industry bodies are gung-ho. An ACMA spokesman says that “The enormous participation of Indian component manufacturers makes AE2008 the perfect showcase. Our global footprint will be re-emphasised (we already have over 300 JVs and technical collaborations) and our members can avail exposure to new technologies. The next wave will be global tie-ups at tier 2 and tier 3 levels.” Putting together this level of foreign participation and coordinating it is a triumph for the CII. According to Gurpal Singh, who is coordinating the CII efforts for AE 2008, India’s fast growing auto industry provides the ‘pull’ factor but the push came from our team which coordinated with foreign delegates and participants to ensure that there are many more participants. We see the auto industry as an engine for growth and a creator of jobs and wealth for India”. It would have been unimaginable even a few years ago that India would have the capacity to host an event of this size. Most visitors will of course be fascinated by the new cars. But most of the real action will come ‘below the radar’ in the form of interactions between industry players and in the form of agreements that fructify over the next two years. AE2008 is a spectacular coming of age party for the Indian auto industry.
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