No Global Auto Manufacturer Will Be At Auto Expo 2020. Here's Why
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While all this while the coronavirus was affecting humans, its next target might just be the Indian automobile industry. Already in the midst of a slowdown, it seems the Centre has asked Chinese vehicle manufacturers not to attend the upcoming auto expo in the national capital region.
In addition, it seems the Chinese media contingent may also have to give the mega event a miss, sources told Entrepreneur India.
According to a report by The Economic Times, more than 20 per cent of the expo’s exhibition area was supposed to be for Chinese companies.
This comes after many major manufacturers have pulled out from the event. Among four-wheeler manufacturers, Honda, Ford, Toyota, Nissan, Jeep, Audi, BMW, Jaguar Land Rover, Volvo and Lexus are skipping this edition while among two-wheeler makers, the ones giving it a miss are Hero MotoCorp, Bajaj Auto, TVS, Yamaha, Kawasaki, KTM, Triumph, Harley-Davidson, Ducati and Revolt Motors.
Auto Expo, one of the world’s largest automotive events, has gone through various revisions since its beginnings in 1986. Erstwhile held in Delhi at Pragati Maidan, the event was shifted to Greater Noida in Uttar Pradesh in 2014. The event has been losing sheen over the years with many giving it a miss the last time as well.
The previous year has been particularly severe for the auto sector, which is undergoing a pronounced slowdown. Passenger vehicle sales declined by 17.98 per cent in the April-November quarter over the same period a year earlier, according to data from the Society of Indian Automobile Manufacturers.
This sector is also marred by the fact that there has been a sudden transition to BS VI regulations that came into effect last year. Multiple reasons have affected the industry including an overall slowdown of the economy, a crisis in the NBFC sector and rising third party insurance prices. Some manufacturers have halted output to balance inventories, which has also led to massive worker layoffs.
On Tuesday, Maruti Suzuki, the country’s biggest carmaker, reported a third quarter profit that missed street estimates.