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New Delhi's auto show illustrates how the global automotive industry has shifted. Big time, yaar.
NEW DELHI, India — From the inexpensive to the luxurious, from the compact to the large, from the locally made to the imported, the automobiles lined up for thousands of visitors to ogle.
The new year’s auto showing season has already taken off in the unlikeliest of locations: India. And if the New Delhi Auto Expo is any indication, the interest here is not so much about the visitor numbers or all the shiny new cars. It's about the recession-defying, double-digit growth rates of India’s auto market.
Aggarwal, an auto fanatic who closely follows global launches and car specifications, said that the size and glitz at the event — with participants from 30 countries — suggested that the center of gravity of the global car market was shifting eastward.
Global automakers are taking on the Indian market, which offers a chance to crisis-ridden production centers, such as Detroit, to haul themselves out of a very serious downturn.
While the global economic recession caused a huge slide in car sales worldwide, “the overall growth rate in India has been 18 percent despite the downturn,” said Neeraj Garg, a director of Volkswagen Group Sales India.
India is expected to continue growing at double-digit rates in the next four to five years, said Garg, whose company is launching a small car, the Polo, in India. Volkswagen is not alone.
On display at the expo, where the sub-$3,000 "Made in India" Nano made waves exactly two years ago, cars ranged from those costing a few thousand dollars to ultra-luxurious machines costing a couple of hundred thousand dollars, when including India’s stiff import duties.
The country’s 1.3 billion population encompasses those eking out a living on a couple of dollars a day to the billionaires who think nothing of splurging on luxuries such as yachts, jet planes and top-end cars.
At the New Delhi Auto Expo, carmakers were obviously catering to these dissimilar segments.