The Indian car industry was all revved up to hit the international scene at the ninth Auto-Expo, which saw over two dozen launches including the world's cheapest car.
The Auto-Expo, which opened in New Delhi on Thursday was twice the size of the Tokyo Motor Show and, with delegates and firms from 25 countries expected to attend, attests to the growing importance of the Indian automotive industry in the world.
The expo has been accredited as the biggest auto exhibition in Asia by the International Organization of Motor Vehicle Manufacturers.
PHOTO: AP
Organizers said the exhibition had a display area of 36,506m2 and hosted 1.5 million visitors, an increase of 50 percent from the show's last edition in 2006.
The eight-day event saw the largest global participation with 2,000 automobile and automotive manufacturers as well as ancillaries from countries like the US, Germany, Japan, China, France and Italy.
Many models, like Honda's Jazz, Volkswagen's UP!, Polo, Fox and Beetle, the Fiat Grande Punto and the Skoda Fabia were showcased. There were also special pavilions such as Diesel City, Infotronics, Design Pavilion and Auto Enterprise to educate and enlighten.
But the spotlight during the expo, which used the theme Mobility for All was on Tata's People's Car, priced at US$2,500, which was unveiled at a special ceremony Thursday.
The car, which has captured global attention, costs less than half of the cheapest car on the Indian market, the Maruti 800, and more than double an entry-level motorcycle.
The rear-engine four-seater is expected to find a market among millions of middle-income buyers looking to upgrade from scooters particularly in India, where small cars are expected to dominate roads in the near future.
Meanwhile, India's leading motorcycle maker, Bajaj, has already announced plans to make a low-cost small car called Lite along with Renault.
According to local news reports, Tata Motors is considering setting up a plant to roll out the car in Thailand in the next three years.
India's biggest car-maker, Maruti Suzuki also displayed its A-Star Concept hatchback car on the eve of the show on Wednesday.
General Motors' best-selling Sports Utility Vehicle Captiva, which was launched for the Indian market will be on display at the show, as will Japan's Honda Motors' technologically advanced fuel cell car FCX and hybrid Civic.
Industry experts say such an interest in India, which is expected to emerge as the second-fastest growing automobile market over the next 10 years, is only natural.
Foreign players have been lining up to make additional investments and have drawn ambitious plans to capture a share in the Indian market, which till now has been dominated by domestic players like Tata and Mahindra.
According to forecasts, the Indian passenger car market is projected to nearly double to 2 million units a year by 2010, helped by rising incomes and installment and loan schemes offered by banks and financial institutions.
Ravi Kant, president of the Society of Indian Automobile Manufacturers Association, one of the organizers, described 2008 as a "watershed year" for the US$34 billion Indian automotive industry.
"The industry is on the cusp of a major growth, on account of major urbanization of the Indian mind and rising incomes, and this is acknowledged internationally," he said.
The Indian market has seen a number of changes over the past few years. Last year, Ashok Leyland and Bajaj signed tie-ups with France's Renault, Hero Group with Germany's Daimler Trucks, Eicher Motors formed a joint venture with Sweden's Volvo even as Tata is all set to acquire Jaguar and Land Rover.
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