JOIN USGlobal car manufacturers jostled for attention at the opening of the Indian Auto Expo on Wednesday, attempting to revive buyers' interest in a local market that is contracting for the first time in a decade.
The giant show on the outskirts of the capital will be used to launch 69 new vehicles for the Indian market, which local and foreign carmakers still see as a future growth centre despite its present-day woes.
“The first month of 2014 did not witness any improvement in the overall industry performance and the situation remains subdued,” said Pravin Shah, head of the auto division of Indian manufacturer Mahindra.
“We hope Auto Expo, which will showcase new products and technology, will trigger a much needed boost for the auto industry and overall sentiment,” he added.
Last year, car sales fell nearly 10 per cent annually, the first fall in 11 years; few see a turnaround before the national elections by May-end.
Sales have been hit by a combination of slowing economic growth, high interest rates, rising fuel prices and low consumer confidence.
“We have no concern in the long term as incomes increase,” head of commercial vehicles at Tata Motors, Ravi Pisharody, said. “The long term will be strong.... (but) there are uncertainties until elections.”
Despite a decade of often double-digit growth in annual sales, India counts just 16 cars per 1,000 inhabitants, compared with 39 in China or 1,000 in the US.