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India's largest auto expo starts today

Top global auto CEOs to skip the largest exhibition in the country's automotive history

Sharmistha MukherjeeSwaraj Baggonkar New Delhi
The 12th edition of the Auto Expo is set to start on Wednesday at Greater Noida, against the background of a prolonged slowdown in the domestic automobile sector and with top global auto chiefs deciding to skip the show. As many as 55 vehicle manufacturers are set to take covers off 69 new passenger cars, utility vehicles, two-wheelers and commercial vehicles, making it the largest exhibition in the country’s automotive history.

Open to the media and industry representatives from Wednesday, the expo will be open for the public from Friday.

The focus for passenger car makers is compact cars and utility vehicles, the only segments that saw an increase in sales in the past 12 months. Top car makers such as Maruti Suzuki will introduce automatic manual transmission (AMT) in small car Celerio. The technology, a first in the segment, would enable the driver to change gears without engaging the clutch. AMT, unlike automatic transmission variants, would not hit fuel efficiency. While Nissan would showcase its small car Datsun GO, Renault has scheduled the global premiere of a compact car.

Tata Motors has already showcased two new offerings, compact sedan Zest and premium hatchback Bolt. Fiat, too, is expected to join the hatchback bandwagon with its 1.4-litre Abarth. However, it is the sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs) that have caught the companies’ fancy this year.

Indians will have their maiden tryst with Honda’s MPV Mobilio, Chrysler’s Grand Cherokee (the SUV that heralds the brand’s entry into the country), Datsun’s MPV GO+, a compact SUV from Mercedes GLA, Korando C from the stable of Mahindra & Mahindra’s South Korean subsidiary Ssangyong. Also slugging it out for attention will be Korean giant Hyundai, showcasing the new Santa Fe, and Renault, introducing the Lodgy (an MPV). Besides, concept compact SUVs are likely to be showcased by Tata Motors, General Motors and Hyundai.

However, the focus in the Auto Expo is not only in passenger cars. Despite a poor performance in terms of sales, manufacturers will showcase for the first time globally eight new products in the commercial vehicle segment. These include VE Commercial Vehicles (which will offer new products from the Eicher Pro range), Tata Motors and Ashok Leyland that have kept their launches under wraps. In the two-wheeler category, there will be three global launches which include the 600-cc sports bike from Hero Motocorp, while Suzuki Motorcycles and Honda Motorcycle and Scooter India will unveil four new two-wheelers each for the domestic market.

One clear trend is the increasing use of information technology in passenger cars, which will be unveiled by many players. Hyundai, for instance, in its to-be- launched Xcent offers a one-touch electric trunk opening, steering mounted audio controls and bluetooth amongst other features.

 
The record number of launches at the auto show — touted to be Asia’s largest — is happening at a time when passenger car sales in the domestic market have registered a decline for the first time in 11 years in 2013. Car sales fell 10 per cent to 1,807,011 vehicles as customers continued to defer purchases amid weak macroeconomic cues. The troubled state of the market compelled manufacturers to cut production of passenger cars 13 times over the past 18 months. Demand was no better in the overall passenger vehicle segment (cars, utility vehicles and vans) and for commercial vehicles, where wholesale numbers dropped by seven per cent and 16 per cent, respectively.

While auto makers are leaving no stone unturned to spoil the consumer with new product offerings across categories, most are skeptic about any immediate recovery in sales. Says Mayank Pareekh, chief operating officer (marketing & sales), Maruti Suzuki India Limited (MSIL), “There is a lot of excitement around the auto show this year but it is unlikely to translate into sales immediately. Nearly 40 per cent of passenger vehicle sales happen to first time buyers, who are deferring purchases. New models may help spur sales among consumers who are either upgrading their cars or buying additional vehicles.” Maruti Suzuki is expected to make a splash with three product interventions across hatchback and sedan categories.

Tata Motors, which has scheduled the highest number of product at 11 models this year, too is expecting a turnaround only later this year. “The market seems difficult. A combination of various factors has dented sales. A lot of new models will be unveiled at the auto show this year. Consumer interest should pick up. At Tata Motors, we expect sales to rev up during the second half of the year when we launch our new products Zest and Bolt”, said Ranjit Yadav, president (passenger car business), Tata Motors. While seven products would come from Tata Motors, the remaining four models would come from the stable of British subsidiary JLR.

The country's largest car maker Maruti Suzuki is additionally likely to display the YL1 (a replacement for the SX4, the not-very-popular sedan), the SX4 crossover and a largish concept SUV (code-named iV4) at the Auto Expo.

Among those making their first appearance in the country are Datsun (the recently resurrected brand for emerging markets from Nissan), Italian bike maker Moto Morini, DSK Hyosung and Japan’s Isuzu Motors. “The increase in number of participants has made us increase the exhibit area by 45 per cent this year to 64,000 square metres. There will be 14 pavilions to display vehicles and three hangars”, said Sugato Sen, deputy director general, Society of Indian Automobile Manufacturers (SIAM).

The increased exhibit area has also enabled the organisers to offer space for experiential activities of Hero MotoCorp, Nissan, Yamaha and Honda Motorcycle and Scooter India (HMSI).The organisers have earmarked separate enclaves to showcase vintage cars, superbikes and super cars, and electric and hybrid vehicles.

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First Published: Feb 05 2014 | 12:50 AM IST

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