Volkswagen, Nissan to debut at Auto Expo '04

Japanese auto-maker Nissan Motors and Germany's Volkswagen AG will participate in the Auto Expo for the first time in its 2004 edition, with plans to test the Indian market ahead of making inroads into the country.

They are among the few global popular segment car makers which are yet to launch their products in the country.

Industry sources said both companies will bring in some of their best selling mid-size cars for display, and will have a high-profile delegation seeking to set up business in India. Executives of both companies were, however, unavailable for comments.

Both Nissan and Volkswagen have been studying the Indian market for a long time. But they are yet to concretise their plans.

A team from the German carmaker was recently on a visit to India to identify a site for a greenfield unit.

But there are unconfirmed reports that Volkswagen has decided to junk its India project. Government sources maintain that the project is still alive. The German carmaker, however, has an indirect presence in India through its Czech subsidiary Skoda Auto.

Not much is known about Nissan's plans, though a few years ago a high-level team from the Japanese car-maker had visited the country to study the market.

The Indian car market is expected to grow at a healthy rate and become one of the largest car markets in the world by 2010, prompting carmakers to have a presence here. So far, around 12 Indian and foreign carmakers have set up manufacturing units.

Some are also importing their vehicles into the country. After a reduction in excise rates in Budget 2003, sales of passenger cars in the local market has been growing at an average 25 per cent and is expected to end the year with an at least 16-17 per cent growth.

Auto Expo 2004 will also see the return of the country's largest carmaker Maruti Udyog which is expected to showcase some new products from parent Suzuki Motor's global stables after a gap of four years.

Local two-wheeler major Bajaj Auto which was also conspicuously absent from the last edition of the show, would make a return. Also back to the show are Piaggio, Volvo, Subros, Jay Bharat Maruti, Goetze India and the Anand Group.

Suzuki will also display its prowess in two-wheelers for the first time, now that it is gearing up for an early launch of its motorcycles and scooters in the country.

But some big companies will be missing this year as well, significant among them being Honda, Toyota, Fiat and Ford, among others.

One of the organisers of this year's show, Confederation of Indian Industry (CII) informs that nearly 60,000 square metres of area in 21 halls have been booked, of which 98 per cent has already been sold out.

There will be around 900 exhibitors in the show representing 20 countries. Among the participating countries, China and UK are bringing 20 firms each, Taiwan is bringing 10 companies, and Germany has booked two full halls to house 35 companies.

A CII source said that this is the first time the organisers have introduced mezzanine floor concept for large exhibitors.

And as a part of crowd control measures, ticket prices have been increased and free park and ride facilities have been introduced.