The Hindu Business Line : Auto Expo will see high profile one-lakh and one-crore car previews

New Delhi, Jan 8 The 9th edition of the Auto Expo is all set to open on Thursday with some high-profile unveilings and launches that are sure to excite both the aspiring car buyer and the auto freaks.

And of course, the most anticipated car unveiling, the much-hyped Rs 1-lakh car from Tata Motors will make its first public appearance on the opening day.

In addition, there are at least three other small car previews and launches expected to happen during the course of the expo, including the Skoda Fabia, the new Tata Indica and the Suzuki Splash.

This year’s show will also, for the first time, have a range of new concept cars and bikes on display such as the Suzuki A-Star and Kizashi, the Hyundai QarmaQ and the Suzuki Biplane.

The expo is also a time for the domestic automobile industry to take stock and discuss future strategies. And this year’s edition of the show is likely to be dominated by issues such as pollution, safety, road congestion, affordability and costs, in addition to the potential roadmap for achieving the industry’s growth targets.

Policy issues such as the need for enforcing fuel efficiency norms, new testing and safety standards and differential tariffs will also find renewed focus.

Speaking on behalf of the industry at the curtain raiser press conference for the 9th Auto Expo, Mr Ravi Kant, President of the Society of Indian Automobile Manufacturers (SIAM) and Managing Director of Tata Motors, said that the industry is also facing difficult issues such as escalating input costs and the high cost of finance.

The domestic automobile industry has been suffering due to the increasing pressure that high interest rates place on the first time car buyer and this has been the reason for a slow down in demand for automobiles, he said.

Affected by the cut in exposure to funding for automobile purchases that finance companies have done during the last few months, automotive companies have been demanding a downward revision in interest rates to spur sales.

Mr Ravi Kant said that the automobile industry wants the Government to rationalise interest rates so that new vehicle sales can be boosted.

Talking about the industry’s growth prospects, Mr Kant said that it is setting itself an

ambitious target to reach a critical size of 10 per cent of gross domestic product by 2010.

The industry is expecting to triple in size within the next decade.

With considerable forward and backward linkages, the automotive industry is also targeting to create as many as 25 million jobs during the next 10 years.

Mr Kant said that the aggressive growth of the industry will be sustained with regular investments and new entrants, including a total of $ 18 billion in new investments.