It is a biennial jamboree that generates a lot of excitement among automobile enthusiasts, the media and industry, and the 11 edition of Auto Expo held in New Delhi was no different. The gloom that pervades the global economy and the fog that has enveloped the auto industry in India in the form of slowing sales due to high finance and fuel costs did little to spoil the party. With an estimated 1,500 participants — vehicle manufacturers, component suppliers and service providers — from 24 countries exhibiting their wares, there was enough and more for the large crowds that thronged the venue at Pragati Maidan. More than 50 new products — passenger cars, two-wheelers and buses/trucks — were unveiled during the show. Except for the President and CEO of Ford Motor Company, Alan Mulally, none of the marquee names turned up. This was indeed surprising given that all the big automobile companies have a major presence in India, which is touted as the market of the future especially for passenger cars. This perhaps had to with the scheduling of the expo during the annual holiday season, or with the troubles that most of the big companies are embroiled in.
The brave show of enthusiasm notwithstanding, the fact remains that the automobile industry is up against stiff challenges on multiple fronts. The high interest rates on car loans and rising petrol prices are pulling down sales. Sales growth of all categories of vehicles put together plunged by more than half, to 13 per cent in the first eight months of the current fiscal compared to the same period last year. Not surprisingly, cars have been hit the most with growth rate winding down to zero from 32 per cent. The possibility of the government imposing a higher tax on diesel cars to correct the distortion in sales pattern due to the wide gap between petrol and diesel prices is a source of anxiety. Some of the manufacturers have invested in diesel engine plants while others are all set to do so. For those who have set up large capacities with an eye on exports, the poor state of infrastructure in ports and connectivity is cause for concern. In addition, labour unrest in some automobile hubs, notably Gurgaon/Manesar and to some extent in Chennai/Bangalore, is also weighing down the industry. There is little doubt the government has to play a big supportive role if that enormous long-term potential of this industry is to be realised. Indeed, government support is the sine qua non for the party to continue in the next edition of Auto Expo in 2014.
Keywords: auto expo
The problems the automobile companies face in our country are endless. The same have repeated at the auto expo too. The mismanagement at the auto expo made an event of international level look like a local bazaar.. The event which was supposed to be very well organised and conducted in a classic manner was carried out in what one could nothing less than chaos. It's no wonder none of the other international big names came to the event, and even if they had it would have been a big disappointment for them. It really do seem progress in our country can be a very difficult task at every level. And the government will have to intervene at every step to make foreign companies feel welcome at every level, might that be at labour level or even organising a simple event.
The auto industry needs to rethink its strategy. Its high time they come down from the high pedastal. Cars like the corolla which are sold world over as entry level cars are merely marked up to make them look like premium segment car. New designs seems to imply merely new cosmetics, new technology is sometime away. Isn't it high time companies stopped dumping 2nd rate products at premium prices to mezmerise the average indian consumer. Further, its high time auto manufacturers work closely with oil companies and commercially role out hydrogen fuel cars with a price tag the average indian can afford. Interest rates are high, but if the running cost is low, that will compensate for the relatively high prevalent interest rates. It's high time automobile companies look long term and not just make that quick buck in the first year of sales.
I really do not understand why people keep coming with suggestions? Is it a way to make your self feel good and conscious?
Most of the auto surverys predict the the future industry market is India (especially in hatchback segment) pushed major brands to get into small cars to capitulate the growing economy and increasing numbers in the package range of 5-7 lakks per annum in following years. Obviously editorial rightly pointed out fuel cost and rate of interest impacted on last quarter sales irrespective of brands except Maruti of its own problem of strike at one of its plant. But now most of the car producers increased their price between 1-3 percentage and few mulling this idea to be implemented soon put an extra burden to the customers or prospective buyers specially middle class group. Due to fast growing economy and getting good package by middle class well educated youths opt for Indian model (most of them first generation or first time car buyer) instead foreign brand (according their sense unknown to their family members or not popular at their native).
Automobile in the traditional role is here to stay for any conceivable future.The government owes it to the public to modernise and fill in the gap in infrastructure in the following sectors to gradually wean people away from over-dependence on fossil-fuel burning, traffic - snarling vehicles: 1. Permanent way set up for cross country, fast and convenient movement of people and cargo to be given top priority. 2. Inter city, town to town, suburban and urban transport to be made convenient, accessible, people - friendly and hassle free. 3. Intensive research to be undertaken for new, revolutionary, cost - effective efficacious and eco-friendly modes of transportation; such as, moving walk ways, moving road-ways where cars and other stationary vehicles can be conveyed on high ways, arterial roads, and within the cities. 4. Under ground mass rapid transport systems using cutting edge and yet - to - be - born technologies.
Commitment and resolve can overhaul the system totally.
Apart from reasons you catalogued in the editorial, one more factor inhibits the buying propensity of the prospective aspirants to own a car. This is the condition of our roads in towns and villages. Most of these roads are not motorable. The road network in the townships gasp for breath owing to heavy congestion emanating from encroachment. Though comparatively minute this factor also acts as a deterrent to the intending buyers to go for the four wheelrs.
If the automobile industry is to make a ‘social’ contribution very soon it has to considerably reduce its dependence on petrol and diesel. The hydrogen-driven three wheeler, prototype of which was shown in the Auto Expo 2012, is perhaps a hope for the future. If commercial production of these three-wheelers can be started, with setting up of hydrogen re-fuelling stations in metro cities, it would be path breaking achievement in urban transport. Let us hope that in a decade from now, we will be able to produce hydrogen-powered cars, buses and other vehicles or hybrid vehicles which can use hydrogen and CNG.
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