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Indian Automobile Firms Deny Participation In Auto Expo 2020. Here’s Why

Surabhi Kedia by Surabhi Kedia
January 1, 2020
in What’s Buzzing
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Indian Automobile Firms Deny Participation In Auto Expo 2020. Here's Why

The Auto Expo is an event held in Greater Noida in India and is Asia’s largest motor show. It depicts the Indian Automotive Industry adopting new technologies and upgrading research and advancement in the uneven Indian conditions.

Indian Automobile Firms Deny Participation In Auto Expo 2020. Here's Why

The 15th edition of the Auto Expo which is scheduled to be held from February 5-12, is expected to be one of the largest expos in the world in the field of footfall. The Chinese companies are expected to make a debut and make the event a hit because the Indian and global auto companies have decided to avoid the event. The main reason behind this is the extended slowdown in the World’s fourth-largest automobile market.

Chinese companies who are attending the event

Three companies have confirmed their participation in the 15th edition of the Auto Expo and will be showcasing their products. They are as follows:

1. The SAIC Motor Corporation which owns the MG Motors brand
2. Great Wall Motors
3. Changan Automobile

Indian Automobile Firms Deny Participation In Auto Expo 2020. Here's Why

Why do the Chinese companies want to debut in this Expo?

These companies see this as an opportunity to capture the battle of slowing sales at the country which fell for the 17th month in a row in November. According to consultancy LMC Automotive, the automobile sales are stumbling in India and the market is expected to grow and become the third-largest in the World by 2026 after China and the US.

Indian Automobile Firms Deny Participation In Auto Expo 2020. Here's Why

Which Indian companies giving it a miss this time and why?

The list of companies who have decided not to participate in this event is long and obstructive. There are a bunch of companies who are not attending this event like Hero MotoCorp, Honda Motorcycles and Scooters India, TVS, Honda Cars India, Toyota Kirloskar Motor, Ford, Nissan, and Ashok Leyland.

Indian Automobile Firms Deny Participation In Auto Expo 2020. Here's Why

According to the manufacturers, the investment in these events is high and the return is low. They do not feel any advantage on their part if they invest money in this Expo. The main reasons are high running costs, poor management, and inconvenient location.

Opinion of the industrialists and companies:

Hero MotorCorp has been a flagship participant of the Auto Expo every year. The reason behind Hero MotoCorp not participating in this edition is as it would require several months of preparation and assembling of many resources in financial terms and in manpower. Prioritizing their objectives, they have decided to avoid participation in this event.

Indian Automobile Firms Deny Participation In Auto Expo 2020. Here's Why

According to Wadhera, the general manager says that its time to choose and prioritize when they are losing their money and are being forced to cut down the production. Spending a huge amount of money on marketing and promotion can be a disadvantage to the company. SLAM is of the opinion that passenger vehicle sales are a quarter lower if compared to the previous year.

Due to the slowdown in the domestic automobile industry, this Automobile Expo will be affected a lot. But this will become a huge advantage of the Chinese automakers to grab onto their share and conquer the Indian market on a large scale very easily.

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