The South Asia’s largest show Indian Auto Expo 2018 is going
to be held in Greater Noida, near New Delhi, in February next year. It provides
a true platform for all the global automakers to display their upcoming models.
Also, it offers an opportunity for carmakers to build their
brand in a country that is expected to be the third-largest car market in the
world by 2025.
Carmakers like Volkswagen India, Skoda India, Ford India,
Audi India, Nissan India, and General Motors India and bike maker Ducati India
have decided not to participate in the event.
This concern may be due to recent increase in the cess and
the implementation of GST. Other than this the issue of return on investments
and participation also have a say in that.
Earlier in 2016, Bajaj Auto, Harley-Davidson India, and
Eicher Motors-controlled Royal Enfield also skipped the show, citing high
participation cost and inadequate returns. This year, too, they have plans to
skip the event due to similar concerns.
Other majors like Skoda and Volkswagen have also affirmed
that it won’t participate in the expo.
The different companies’ executives mentioned
non-availability of India-specific models to showcase in the expo and financial
constraints as the main reasons for skipping the show.
While the organisers are gung-ho about the new players’
entry such as Korean Kia, MG Motor unit, China’s SAIC and France’s Peugeot.
The non-participation of several automakers could be because
they don’t have “suitable products for the show, especially for a market like
India, where customers like to touch and feel the product”, said Anil Sharma,
principal analyst at IHS Automotive.
India is an emerging market, where car penetration is still
18 per 1,000 people, against 800 per 1,000 in the US. “Automobiles still have
aspirational value attached to them and that utilitarian value has not seeped
in yet,” added Sharma.
The event is organised by industry body Society of Indian
Automobile Manufacturers (SIAM) and business chamber CII.
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