Business Standard

Pedal to metal

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Business Standard New Delhi
The latest Auto Expo grabbed the headlines even before its scheduled start""for all the wrong reasons. It did so in 2004 too, when some major auto makers decided that the bi-annual event was too expensive for their scale of operations in India. Sure, it costs Rs 3-5 crore for a car maker to put up a significant show at the Auto Expo, and you cannot blame them if they decide to opt out if they have nothing new to put on display. The issue is two-fold""like the Tokyo Motor Show and unlike the Frankfurt show, the Auto Expo has to accommodate both car and two-wheeler manufacturers. And unlike both Tokyo and Frankfurt, the Auto Expo has to find space for the massive component industry and commercial vehicle makers as well. Unfortunately, the respective industries are not yet big enough to command their own, separate events. Once that happens, India can have a giant car and bike expo, followed by a major component and commercial vehicle show, every alternate year.
 
As for the 8th Expo, there were cars and bikes that people could relate to, instead of only futuristic concepts that may never reach a production line. It was particularly interesting to see Indian players focusing on tomorrow's technology. Mahindra & Mahindra stole attention with a running hybrid vehicle, and TVS showed that it is capable of world-class motorcycle concepts. It was also heartening to see component giants such as Mico Bosch sharing pavilion space with proper car makers. The two-wheeler giants tried their best to show the world how they are going to meet the demands of the world's second-largest two-wheeler market. Enthusiasts got their eye-candy in sizzling-yet-show-only superbikes, while newcomers like Suzuki indicated that the action in the 125cc segment has only begun. Indeed, new-age commercial vehicles on display showed how quickly the Indian landscape will change. Monster Tatras and low-floor Volvo buses too were on display, and bleeding-edge technology from Tata Motors and Ashok Leyland reflected how determined the government authorities are to ensure stricter emission and safety standards.
 
It became clear, then, that Chinese machines will find it difficult to conquer Indian roads. There were a few cheap tractors and two-wheelers on display at hastily put up joint venture stalls--but they lacked the quality and overall fit and finish of their Indian equivalents. That also explained why Chinese business delegations were queueing up to meet Indian component companies.
 
The accessory and ancillary industry too was there at full strength, indicating that the Indian car buyer has arrived in life. He is now ready to spend money on his car""whether it be a fancy sticker job or a set of "bling" alloy wheels with matching tyres. Indian tyre majors chose not to spend money on pavilions since their original-equipment order books are now full.
 
But despite the mega venture between Tata and Fiat and the resulting Alfa Romeo concept at the show, the Expo lacked the all-important "wow" factor. The component side made up with what is estimated to be orders worth $150 million. Established car makers from around the world shopped for Indian components and many ended up signing up for the future. Take note, China!

 
 

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First Published: Jan 20 2006 | 12:00 AM IST

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