Bajaj, Skoda, DICV, Volvo among brands to miss Auto Expo '16

The 2016 Auto Expo is unlikely to see participation of some big brands. Bajaj Auto, Skoda, Daimler India Commercial Vehicles, Volvo, Volvo Cars, Royal Enfield and Harley-Davidson have decided against participating in the thirteenth edition of the Auto Expo, which is scheduled to be held in February 2016. At least four of these manufacturers were present at the 2014 edition of the Expo.

Some of the manufacturers have decided to stay away as they would like to cut their costs. The average expenditure of a company for the event, including floor rental, is Rs. 5-15 crore, depending on the floor space.

Skoda's sales have fallen by 25% last year. The company has decided to cut costs and is reported to be investing in improving its after-sales support, which has been its weakness over the years.

The Society of Indian Automobile Manufacturers (SIAM) maintains that the rental for floor space has not gone up since 2012. Rentals are the lowest compared to any other international shows or auto events in India.

Bajaj Auto has decided against participating as it is of the opinion that such events are suitable only for manufacturers who want to gain recognition in a particular country. Bajaj believes that it has enough recognition in India. The company also feels that showing its future products will alert its competitors.

While Harley-Davidson has not given any reason as to why it will stay away from the Auto Expo, reports suggest that the American company is doing so because it has no new products to display. It will be the first time since 2010 that the legendary motorcycle manufacturer will miss the event.

Daimler India Commercial Vehicles (DICV) is planning to participate in EXCON 2015, which is scheduled to be held in November 2015. It has not revealed any plans to participate in the Auto Expo.

Some manufacturers prefer to use pre-expo media events to launch their new products instead of the week-long Expo as it is much cheaper. Such events at 5-star hotels cost just Rs. 35-50 lakh.

Even so, there are some manufacturers who have decided to stick to the Expo. Fiat is expected to  display Maserati and Jeep vehicles at the event. SIAM is hoping that more players, including Ducati, will hop on to the bandwagon in the coming months.

Source: Business Standard