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Maruti, Bajaj drive out of Auto Expo

BS Corporate Bureau

Maruti Udyog, the country’s largest car producer, will not be there to display its ware at the Auto Expo 2002 in January next year.

Neither will Bajaj Auto, with its gleaming motorcycles and scooters. Volvo and its futuristic trucks too will be conspicuous by their absence.

Apart from these crowd-pullers, the companies opting out of the automobile carnival include car producers like General Motors and Honda Siel Cars and truck maker Tatra.

Recession has taken its toll on the biennial event which used to draw huge crowds eager to check out the latest machines put on display by Indian as well as foreign automobile companies.

Thus, the number of exhibitors is down by 10 per cent as compared to Auto Expo 2000, while overseas participants are down by a third. The participation of auto component manufacturers also will be down by 10 per cent.

Companies which have opted out say they are finding it expensive to participate in the event. This, despite the fact that the floor rates have been maintained at the Auto Expo 2000 levels.

“The whole thing would cost us Rs 40 million. Under the circumstances, we would like to avoid these expenses and instead spend on product launches,” Bajaj Auto vice-president (business development & marketing) RL Ravichandran told Business Standard.

Others too have opted out to focus on product launches. Maruti, for example, has just kicked off a high decibel campaign for its latest offering, Versa, including Amitabh Bachchan and his son, Abhishek.

The organisers--the Confederation of Indian Industry, the Automotive Component Manufacturers Association of India and the Society of Indian Automobile Manufacturers Association--blame the general economic slowdown for the decrease in participation.

Subodh Bhargava, chairman (trade fairs), CII, said, “We expect around 950 companies to participate this year as compared to around 1,020 last year.

That’s alright considering the environment.” Added R Seshasayee, president of SIAM, “We have also started several regional level expositions where companies participate. Besides, companies which have recently launched a slew of products in the market, may not be finding the show relevant this time round.”

Prospective visitors to Auto Expo 2002 can take heart from the fact that several manufacturers such as Ford, Hyundai, Honda Motorcycles and Scooters India, Skoda, Mercedes, BMW and Toyota are expected to adorn their stalls with the latest global models.

With the bike segment of the two-wheeler market also zooming, Indian and foreign (Chinese also) companies will showcase their firepower during the show.

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