Auto Expo 2012 has industry on pins and needles

If the 2010 Delhi Auto Expo was better remembered as an absolute nightmare for participants and visitors, things could be a lot worse in 2012.

With barely five months to go before the event kicks off in January, all manufacturers can do now is to keep their fingers crossed and hope for the best.

In 2010, the complaints ranged from the poor infrastructure at the venue, Pragati Maidan, to the abysmal restroom facilities. This state of affairs is bound to continue in 2012, sources say.

In fact, with the added pressure on space (with more participants entering the picture), the auto industry is gearing up for another catastrophic experience.

“It's a pity really. Here's one of Asia's biggest auto events being hosted in a venue that is not even remotely world-class. On the contrary, it is an embarrassment to India's image,” an auto sector CEO told Business Line .

Disgruntled lot

The industry was hoping that after 2010, two years were adequate to put the house in order. Nothing of the kind has happened and, today, the participants are a disgruntled lot.

“We are putting in big money for the Auto Expo and feel short-changed each time,” an official said.

On an average, the spend works out to ‘crores of rupees' for each company where rentals for the venue take up a lion's share. In addition, there are other overheads for hotels, conveyance and entertainment.

“And what do we get in return? Filthy restrooms, garbage piling up near eateries and unruly crowds who can make life difficult for the young models in our stalls,” the official added.

Space problem

Sensing that space was going to be a huge constraint, the key organisers — the Society of Indian Automobile Manufacturers, Confederation of Indian Industry and the Automotive Component Manufacturers Association of India — explored an alternative site in Noida near Delhi.

The other option was to house the ancillary suppliers elsewhere but this did not work out either. Finally, there was no choice but to go ahead with Pragati Maidan even though every nook and corner is in dire need of a facelift.

Of the 50,000 square metres space on offer, the vehicle makers will occupy roughly two-thirds with the balance taken up by the component sector.

Apparently, a section of manufacturers wanted more space but this was clearly out of the question. “We are lucky that we were not asked to downsize instead,” a company official quipped.

Needs better treatment

The industry believes that it is entitled to better treatment especially at a time when it is up against a sluggish market and the prospects of a slowdown are real.

“Allotting a substantial budget for the Expo during these troubled times involves a lot of pain. It is asking too much to expect standards on the lines of auto shows in Shanghai or Geneva?” an executive wondered.

For the moment, this is a farfetched idea and it would actually be a miracle if the 2012 Expo actually goes off smoothly without any major glitches.

Things may get even trickier in 2014 and this is where the auto industry would have to look at options beyond Pragati Maidan for the future.

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