The eighth Auto Expo kicks off on Thursday promising new launches and big announcements by domestic and global automobile giants, even as the booming industry sought flexibility in labour laws to maintain the growth momentum.
The mega event, jointly organised by the Society of Indian Automobile Manufacturers, the Auto Component Manufacturers Association and the Confederation of Indian Industry, will be inaugurated by Commerce and Industry Minister Kamal Nath and Heavy Industries Minister Santosh Mohan Deb.
"This is the biggest-ever auto show held in India and amply demonstrates the country's growing stature in the automobile industry," SIAM president Madhur Bajaj told reporters in New Delhi about the event, which promises six days of automobile extravaganza.
Though he lauded the growth statistics, labour laws remained a major cause for concern for the industry.
"There is a lot of rigidity in the Indian labour laws, which are outdated, archaic and certainly need to be changed," he said.
The Expo, which provides a major opportunity for Indian automobile and component industry to showcase their prowess, is expected to see business deals nearly double to cross the $100 million (Rs 440 crore) barrier this time.
"The response is enormous and we expect that business deals, valued around $55 million in the 2004 edition, will cross $100 million (this year)," a senior CII official said.
Auto component manufacturers, who will occupy as much as 60 per cent of the total 70,000 sq metres space, have seen participation rise by a big 40-50 per cent.
"It is one of the biggest event for many companies, many of which are small and hope to get most of their orders here," he said.
The Indian auto component industry, which is focusing more and more on achieving global quality levels, has been on a roll for the last few years with many international companies and suppliers sourcing components to take benefit of lower costs.
Major companies from the Indian auto component sector in the 2006 edition include TVS Group (50 per cent increase in space), Kalyani Group (300 per cent increase), Pricol, Goetze, Talbros Group, Essar Steel, Subros, Amtek, Clutch Auto, Jay Bharat Maruti, Sigma Group, Timken, Cummins, Minda Group and Hi-Tech Gears.
Many international component manufacturers have also shown interest and are participating for the first time this year. These include ABA (Sweden), Beijing East Group (China), Centro Esetro Camere Group (Italy), Chan Chao International Group (Taiwan), CWCE Group (Shanghai), Dow Corning (US), Frenos Electricos (Spain), IKIDO (Iran), Jetta Trade Group (Taiwan), Magna International (Canada) and Taiwan Hand Tools Group.
