As the slowdown in the auto sector is now entering its 11th month, the top automakers of India have decided to skip the Auto Expo 2020. Original equipment manufacturers (OEMs) cite the current slowdown, Bharat Stage Six (BS-VI) transition and inventory levels as a challenge.
Both the financially and in terms of manpower to meet the BS6 deadline of April 2020, the Hero MotoCorp company has announced that the company has set to leave the Auto Expo scheduled in next year February.
Hero MotoCorp Set To Skip Auto Expo 2020
The Auto Expo 2020 is just a few months away and it will open its doors for the general public on 7th February until 12th February 2020. This is one of the largest biennial auto events to be held in India and this event is attended by most Indian automobile manufacturers, showcasing the top products, concepts, and technologies.
However, the auto sector is facing a massive economic crisis, with many Indian manufacturers moving away from the New Delhi Auto Expo and the latest to join this list is Hero MotoCorp. The world’s biggest two-wheeler manufacturer has announced that it will drop the event according to the regulatory filing of the company.
A statement is coming from the Hero MotoCorp is, “The domestic two-wheeler industry has been passing through a time of volatility, with market demand still continuing to be sluggish. Notwithstanding these challenges, Hero MotoCorp – and indeed the entire industry – is gearing up for the migration to the new emission norms ahead of the mandatory deadline of April 1, 2020. At a time such as this, it is prudent for us to prioritize our resources towards meeting business objectives for the benefit of our customers and other stakeholders.
In the midst of these significant transitions, the Auto Expo – The Motor Show – is going to be held in Greater Naida in early February next year. As the market leader and one of the most vocal torchbearers of the industry, Hero MotoCorp has always been a flagship participant at the Auto Expo in the previous years.
However, participation in the Expo would require months of preparation and allocation of massive resources – both in terms of financial spends and manpower. In keeping with the prioritized objectives, the Company has decided after much deliberation, to skip the upcoming Auto Expo.”
Typically, the Hero MotoCorp has one of the biggest pavilions in the biennial event and the absence of the company is a large-scale reality check for the financial health of the auto industry. The brand has revealed future products, concepts and its current range for their visitors in the upcoming years, making it a great case to look forward to.
With the company announcements, the Hero MotoCorp joins TVS Motor Company, Bajaj Auto, Yamaha, and Royal Enfield, which will be missing the motor show. The Honda Motorcycle and Scooter India (HMSI) is also speculated to drop the event altogether to focus on its upgrading products to BS6 emission norms.
Stringent emission norms, piling the BS4 inventories and economic slowdown have increased the pressure on the auto manufacturers. There is also a declining number of footfalls at the motor show, which has been questioned by the manufacturers of the financial viability. With the high costs and months of preparation for the Auto Expo, manufacturers find it economically more efficient to organize a separate event outside the Expo and launch products there.
Many manufacturers have resorted to such moves in the past, organizing days before the Auto Expo, and we expect to see similar announcements next year as well. It is being said that the vehicle manufacturers will return to the New Delhi Auto Expo in the future if the market is correct for growth estimates.