The Auto Expo in January will definitely emerge out as a silver lining for the car industry as it is all-set to offer a coveted platform to automobile companies, using which these makers would try to suppress unbidden circumstances.
The Asia's largest automotive show is likely to witness the highly flamboyant launch of 60 new vehicles, besides product and brand unwrappings that are slated to take place in the next five days. If industry experts are to be believed, the car sales are expected to get a shot in the arm during the time period of January to March next year.
The passenger car sales have suffered a huge blow, with a fall of 5% between April and October in 2011, wherein the latter month registered 24% decline that is the worst figure in last 10 years. The unfavourable trends persisting in the market amidst increasing fuel prices and exorbitant interest rates make situations unbearable. Moreover, frequent revision in model prices, in view of untamed commodity costs, have put car makers in a vulnerable position.
Abdul Majeed, auto practice leader at PwC stated in an interview that “The market is not really saturated and this (lower car sales) is a temporary phenomena. People are postponing purchases, not cancelling plans to buy cars. The mood is subdued; the industry is going through tough times.”
Proving to be an anodyne, the upcoming launches would offer an opportunity to the car makers to take things under their control, albeit gradually. As the inflation rate has been envisaged to show some mercy, with the state of fluidity likely to improve, car companies can take a breather during the death months of the year, added Majeed.
Sugato Sen, Senior Director at industry body and Expo co-organiser Society of Indian Automobile Manufacturers (SIAM) said, the high-scale event is ought to infuse life into the market. He added that “Two wheelers and commercial vehicles are doing fine; only cars are impacted. This means there is money with customers, but they are not willing to spend. So a push is required, we expect sales to pick up after January.”
It is important to note that the Delhi Auto Expo 2012 has vowed to surface as the biggest-ever in its 25 year unprecedented history. The auto show is likely to embrace all the 10 global car majors, wherein French group PSA Peugeot Citroen confirms to be a part of the event most recently. In addition, sports and super car producers Bugatti, Ferrari, Lamborghini, Porsche and Maserati will be making their way to the Auto Expo 2012.
Approximately 45 auto makers would line-up with their model range, and the visitors would also experience the showcasing of BMW's Mini brand, BMW Motorrad, Peugeot and Triumph bikes.
Thus, the 2012 Auto Expo has abundant attractions for enthusiasts and wide range of vehicles on display for potential buyers, who, at present, possess weak sentiments.
