Despite the pronounced econmic slowdown, the Auto Expo 2014 – The Motor Show is likely to attract humungous crowd, with the resultant boost in the industry, which is passing through a bad patch.
The Auto Expo 2014 – Motorshow and Auto Expo 2014 – Component will be held in Greater Noida and Pragati Maidan, New Delhi next week. The automotive industry is hoping to bounce back with the launch of 70 new cars.
Vikram Kirloskar, President of SIAM said: “There is pent-up demand, but the car buyers are postponing their purchases due to a gamut of reasons including lesser income, burgeoning interest rates, along with peaking inflation. We hope that this exposition will draw them out to trigger demand, though the revival in the automotive horizon is unlikely unless there is a revival of economic growth”.
At the expo, jointly organised by SIAM, CII and ACMA, around 70 new cars will be launched, out of which 26 would be global models. What is more, 15 global cars would be unpacked at the trade fair, the official pointed out.
The Indian automotive sector has been gripped by a bout of slowdown, with annual car sales dipping for the first time in eleven years last year, recording a 9.59 decrease. A stable government after the general elections with sound policies would contain inflation and furhter boosting the economy. Once the economy picks up, that would accrue disposalble income in the middle-class segment, which are the highest consumers of small cars. The volume will pick up once the consumer sentiment improves. Added to that the RBI will also relax the repo rates, so that banks can lend more money on hire purchase loans for vehicles.
Vishnu Mathur, Director-General of SIAM opined that an estimated 540,000 persons are likely to attend the trade fair. In the previous edition of the expo, around 700,000 footfalls were recorded.
Mathur said: “We forecast that about 100,000 people will visit the expo on the public days between February 7-11, 2014 at the Motor Show in Greater Noida. At the Component Show being held in Pragati Maidan, we are aiming at around 10,000 footfalls a day”.
The official also added that 55 auto makers are taking part at Greater Noida as against 45 in 2012 Auto Expo. Having said that the number of exhibitors at the Component Show is comparitively less. The Component Show, to be held at Pragati Maidan from February 6-11, 2014 has 1100 exhibitors in contrast with 1500 firms taking part in the previous edition.