It is unlikely that automobile enthusiasts will give Auto Expo '98 the go by. But there's another core group of visitors that is already busy packing its bags for the January event. This consists of the representatives of some six hundred companies that have at least some link with the automobiles being represented at the fair. And though they may not all be housed under the same roof, the Expo is the time when the bigger car manufacturers will meet up with component suppliers, and the suppliers, in turn, will meet with smaller parts manufacturers, to set up a chain that will create the automobiles of the next millennium. Like it did during Auto Expo '96, the components sector is awaiting the fair with enthusiasm for it will provide them the opportunity to explore new possibilities in original equipment markets, after-markets and even export markets.
The components industry is expected to come up with turnovers in the range of $9.4 billion in 2001 AD, up from a mere $2 million odd three years back, according to a detailed study conducted by McKinsey and Company. That is a four-fold jump, and this is what makes Auto Enterprise '98, a parallel fair to Auto Expo '98, even more prominent. No wonder there are more component manufacturers at the Auto Expo than actual automobile manufacturers. The smaller auto component companies are expected to come together under the banner of Auto Enterprise '98 while the major players will be at Auto Expo '98 itself.
The business opportunities at the Expo can be qualified by the confirm ed orders that come in for the participating companies. The first ever Auto Expo, way back in 1986, generated orders worth Rs. 23 million. The second Expo (seven years later) took that figure up to Rs. 56 million while the third Expo in 1996 doubled that figure. But this is only representative of the business conducted during the fair where merely a fraction of the companies complete transactions and place orders. For the thousands of enquiries that occur during the Expo, it takes a lot longer after the fair to gain even larger orders. The Confederation of Indian Industries (CII) figures suggest that while the first Expo dealt with 845 enquiries, the second had taken it up to 1,537 enquiries, while the third dealt with 2,400 of them.
This is also an important occasion for the manufacturers and the components industry to realise their strengths and weaknesses, and to discover where they are placed in an industry that gains a competitive edge by the day.
As regards exports, Auto Expo '96 proved an eye-opener for Indian components manufactures. Visiting European and Japanese delegations expressed their satisfaction with the quality of Indian-made components for use in modern day automobiles, generating immense opportunities for the export of these components. At the 1998 Expo, group participation has been confirmed from Australia, France, Germany, Italy, Pakistan, Taiwan and the United Kingdom.
Equally important is the certification that the Auto Expo has received from the Union Des Foires (UFI) at its 63rd General Assembly in Tokyo. According to the organisers of the fair, UFI certifies the highest level of international standards and bears testimony to the high quality of fair management and facilities provided to the business visitors.
During the fair, the auto components industry will be divided into the following segments: Bodyparts (automotive sheet metal parts), castings and forgings, drive\transmission and steering parts, electrical parts and equipment, engine parts, hydraulic and pneumatic equipment, suspension and brake parts, and other auto parts and accessories.
Apart from this, tyre manufacturers and oil and lubricant companies will also be represented at the fair.
The Auto Expo aims at promoting business tie ups and joint ventures, and hopes to look into the options of technology transfer between the participants.
The organisers have reason to be happy that the space at Pragati Maidan has been booked three months in advance of the opening of the fair. All efforts are now underway to provide the business visitor the perfect opportunity to make the maximum out of Auto Expo '98.