New Delhi Auto Show Prepares To Open
January 08, 2008

NEW DELHI, INDIA -- The New Delhi Auto Expo is less than 24 hours away from holding its press day, and the paint is almost dry on the signs for the media center.

Show organizers are paying close attention to such details as this auto show is likely to be the most visible of any auto show in India in the past.

Edmunds.com’s AutoObserver will be the eyes for those who can’t attend the show as Paris-based correspondent Nick Kurczewski covers the show.

Why the New Delhi Auto Expo?

One only has to read the headlines in newspapers around the globe, including the U.S., in recent weeks to realize India is on the rise in the auto industry, with global automakers setting strategies for India and shopping for marriage partners.

Just Tuesday, on the eve of the opening of the New Delhi auto show, Ford announced a $500 million investment and the development of a new small car in India. Earlier, Ford confirmed it is in “focused” negotiations with India’s Tata Motors for the purchase of Jaguar and Land Rover.

Chrysler isn’t confirming anything but rumor has it the U.S. automaker is in talks with India’s Mahindra & Mahindra, which was among the bidders for Jaguar and Land Rover, for some kind of partnership.

General Motors has been expanding in India and recently opened a design center there, with the goal of its Indian designers coming up with styles for their home market. GMM produces five Chevrolet models in India. It is investing more than $300 million for a second factory to be operational by year end.

A number of European and Japanese makers have operations and some joint ventures in India. Chinese automakers also are moving in and will have a presence at the New Delhi show.

Meantime, India's automakers have been making noise for years about selling cars in the U.S. 

Major Announcements Expected

The New Delhi auto show, which runs from Jan. 10 to Jan. 17, will be the stage for some major industry announcements and highly-anticipated product unveilings.

At the top of the list is the unveiling of what promises to be the world’s cheapest car – at 1 lakh (100,000 rupees or roughly $2,500) car from India’s Tata Group, a conglomerate involved in industries as diverse as tea, steel and automobiles. Some analysts predict the 1-lakh car, as it has been referred to, could revolutionize car costs globally. Company founder and chief Ratan Tata, an architect trained at Cornell University, personally helped design the car in his aim to move India’s masses from motorbikes to cars.

Maruti Suzuki, a venture between India’s Maruti and Japan’s Suzuki, will hold the first-ever world premiere of a new small car that will go on sale worldwide, including in the U.S.

Numbers Not To Be Ignored

India’s growth projections are dazzling, only eclipsed by those of China. It is currently the 11th largest passenger car market in the world, but its rapid growth is expected to thrust it to seventh place by 2016. It is the fourth largest commercial vehicle market in the world. And it is the world’s second largest two-wheel market.

Also attractive to manufacturers is India’s robust -– and cheap -– production base as well as its highly educated engineering talent. India is much talked about as a future base of assembly for small cars exported worldwide.

Interest in New Delhi Show

Not surprisingly, the Society of Indian Automobile Manufacturers, who organize the biennial New Delhi show, report the largest overseas participation ever at the show with 28 countries participating with Country Pavilions, from Austria  to the U.S. The show consumes 125,000 square meters spread into 18 permanent halls and 10 temporary halls along with a number of state pavilions.

Volkswagen will be be there with its full product line for the first time since setting up shop in India. Hyundai, General Motors and Daimler are back after skipping the last show. Honda has doubled its floor space and will unveil a new small-car concept for India.

Local media report the New Delhi show has gained such importance that top management from global auto companies will attend, including the entire Skoda board, the senior Volkswagen management team, top Fiat and Yamaha executives.

And AutoObserver will be there.

Photos by Nick Kurczewski

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