The mass puller Auto Expo, which offers a coveted platform to car makers and throws its full weight behind their innovative ideas and new line ups, is ready to give adrenaline rush once again. India's as well as Asia's largest automotive event that arrives once in every two years, gears up to enthral the aficionados as the 11th edition kicks-off from 7th January 2011, with much aplomb and flamboyance.
The electrifying auto show would emerge as a nebuliser for the car sales that has been asphyxiated by the unbidden trends, which have made the auto industry vulnerable to slowdown and anti-forces. The faltering sales have been glued to performance graph of most of the car companies from a long time now.
As a matter of fact, the encouraging 30% growth witnessed during the initial months of 2011 has lost itself in the dark, as the July-September quarter saw a fall of 9%. The sales of two wheelers and trucks, which were going through the roof till the recent past, have started shedding numbers.
The purchasing power of the buyers has been reduced, owing to the Reserve Bank of India’s 13 back to back revisions in interest rate during this fiscal. Moreover, the considerable rise in the purchasing cost of vehicles, due to skyrocketing petrol prices, has blocked the way that leads to showrooms.
It is important to note that the price of petrol has gone up by Rs. 18 per litre since it was removed from under the government's umbrella, more than a year ago. While untamed raw material prices have severely axed out margins, the labour unrest too finds itself in the list of top deterrents. All this has led to unimaginable production losses, particularly for India's largest car maker Maruti Suzuki.
The leaders, such as Maruti Suzuki, Tata Motors and Mahindra, have registered downfalls in their net profits. Honda and Toyota, which mulls upon large-scale operations in the auto industry, are currently recuperating from the loss they suffered by the catastrophes that shook their production base.
However, when it comes to the upcoming Auto Expo, the automobile brands have been acting indifferent to all the setbacks staring at them in the industry. Feeling confident about their new launches and showcases, car makers are likely to use the major event to the best of their advantage and restore strength and agility in its performance.
Thus, with more than 60 new launches coming New Delhi's way and around 20 lac visitors expected to throng the event, the Auto Expo would surely hold the hands of the car makers to cross past the high tides.
