Sunday, December 27, 2009

The 10th Indian Auto Expo re-establish India’s position in the world auto-industry

The year 2009 had been a rough year for auto makers in developed countries but not for India. Though sales declined, it quickly went up and the industry observed a “historically high” quarterly profit in the passenger car segment. Already, India has zoomed past China and Japan and became third largest car market in Asia with a big appetite for small inexpensive car. For all these reason, organizers are expecting that the 10th Indian Auto Expo will attract lots of visitors.

In various developed market around the world, auto companies posted huge losses. The Indian auto market on the other hand, saw thirty new launches and high quarterly profits at the end of the year. Indian economy battled with credit crunch, high inflation and then global economy. In the first three months, sales went down. In the next quarter, the car sales saw a decent rise. In November, new car sales in India increased by 61 percent on year-over-year basis to 133,687 units. Thanks to government’s stimulus package and duty and vat reduction. According to Mr Rakesh Batra, Partner and National Leader, Auto Practice, Ernst & Young, in the current financial year, number of Indian passenger vehicle will cross two million units.

It is now clear that the Indian auto market cannot and should not be ignored. The 10th Indian Auto Expo, which will be held from January 5, 2010, to January 10, 2010 will is expected to attract 1.8 million visitors. A total of 2100 companies will participate in the show. Rajiv Kaul, Chairman, 10th Indian Auto Expo said that the area of the fair has been doubled to 125,000 square meters. More than ten new launches will happen throughout the fair and eight hundred international companies will participate in the show. Even now, many companies are contacting to participate in the show but all the pavilions have been booked already.

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The Hindu Business Line

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