BackAuto shows lose sheen amid waning consumer interest, slump in sector
India’s automobile market has been in the midst of an acute slowdown due to a slump in consumptionThis has likely prompted some of the biggest names in the auto industry to stay away from the Auto Expo 2020
PremiumNEW DELHI : Until about five years ago, Delhi’s auto show would attract the biggest names in the global automobile industry as companies sought to gauge the pulse of potential buyers in one of the world’s potential growth markets for automobiles.
This year’s show, however, is likely to be a toned-down affair, along the lines of similar events across auto hubs such as Frankfurt, Detroit, Tokyo and Paris, due to a global slowdown.
India’s automobile market has been in the midst of an acute slowdown due to a slump in consumption. At the same time, automakers have invested significantly in upgrading their products to Bharat Stage-VI emission norms and the near-term outlook for a revival in sales also looks grim.
This has likely prompted some of the biggest names in the two-wheeler industry—Hero MotoCorp Ltd, TVS Motor Co. and Honda Motorcycle and Scooter India Pvt. Ltd—to stay away. Others such as Honda Cars India Ltd and Toyota Kirloskar Motors India Pvt. Ltd have also decided to give it a miss.
In the luxury segment, German behemoths Audi India and BMW India Pvt. Ltd also chose to remain absent.
Senior executives of participating original equipment manufacturers (OEMs), however, said the Delhi show could help partly revive customer sentiment, which ebbed significantly over the last one and a half years. “When people see new cars, then they would also want to own one. It will create some momentum. I think honestly it’s the right moment (for the show to take place) and it’s good that Siam didn’t decide to call it off. If we don’t do it, then who will?," said Martin Schwenk, managing director and chief executive, Mercedes-Benz India.
The drop in interest at the Delhi event is in line with global trends, as auto shows across continents have shrunk in terms of the number of participants as well as footfalls, especially in the last two years. Recently, the German Association of the Automotive Industry (VDA), organizers of the Frankfurt Motor Show, decided to move the show from the country’s financial capital, due to a sharp drop in visitors and participants. The lobby group has instead narrowed down on cities like Berlin and Munich as the potential venue for the 2021 show.
According to Automotive News, the step to move the Frankfurt show is emblematic of a broader trend of falling consumer interest in car shows. Visitor numbers had fallen by 30% in the last edition.
Rising concerns about climate change, and the effort to reduce carbon footprint, have led to cars not being considered as an object of desire. Moreover, with the product pipeline of a company readily available on the internet, consumers are no longer so enthused about products showcased at auto shows.
Colin Couchman, head, automotive sales, forecasting, IHS Markit, said motor shows have lost their pull across the world and this trend likely reflects a blend of societal, demographic and technological factors.
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