In all of this, while coronavirus was infecting people, the next target could be the Indian auto industry. The industry is already experiencing slowdowns; it appears that the Centre has urged Chinese automobile manufacturers not to attend the auto expo scheduled for next month in the capital region of the nation.
Additionally, it appears the Chinese media might also be forced to leave the event a pass, sources said to entrepreneurs in India.
According to an article by The Economic Times, more than 20% of the exhibition space was slated to be devoted to Chinese businesses.
The news comes as a number of major brands have decided to pull out of the event. For four-wheeler makers, Honda, Ford, Toyota, Nissan, Jeep, Audi, BMW, Jaguar Land Rover, Volvo, and Lexus have opted out of this event, as well as two-wheeler makers. Those who are giving the event a miss will be Hero MotoCorp, Bajaj Auto, TVS, Yamaha, Kawasaki, KTM, Triumph, Harley-Davidson, Ducati, and Revolt Motors.
Auto Expo, one of the largest automobile events in the world, has seen a variety of changes since its inception around 1986. The first time the event was held in Delhi at Pragati Maidan; the event was moved from the city of Delhi to Greater Noida in Uttar Pradesh in 2014. The event has lost shine over time, with many deciding to give it a miss this time around as well.
The last year has been especially difficult for the auto segment, which is currently experiencing an accelerated slowdown. The sales of passenger vehicles fell by 17.98 percent during the April-November period compared to the same period one year prior, according to statistics obtained from the Society of Indian Automobile Manufacturers.
The sector is also impacted by the reality that there was an abrupt transition from BS VI regulations that came into force this year. Many factors have affected the industry, including a general economic slowdown, a slump in the NBFC sector, and a rise in third-party insurance costs. Certain manufacturers have stopped production in order to manage inventories, which has caused massive layoffs of employees.
This week, Maruti Suzuki, the nation’s largest automaker, reported an operating profit of 3 percent, which was below street forecasts.