In a surprising update, Hero MotoCorp, TVS and Royal Enfield have decided to skip Auto Expo 2020. The slowdown in the industry over the past year can be associated with the decision of the manufacturers to skip the biennial event.
The revised insurance structure and the mandatory addition of ABS/CBS tech to all two-wheelers have resulted in steep price increases over the last year. The R&D cost to upgrade the vehicles to the upcoming BS-VI emission norms will further increase the prices of the products. With no GST relief to the automobile industry from the Government, the prices are not likely to come down soon, and the slump in sales may continue for long. Thus, brands would want to avoid any unnecessary expenses, and skipping Auto Expo 2020 can be one of the measures.
In the statement recently, Hero MotoCorp said:
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 prioritise our resources towards meeting business objectives for the benefit of our customers and other stakeholders.
The statement further added:
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 prioritised objectives, the Company has decided after much deliberation, to s kip the upcoming Auto Expo.
Companies like Royal Enfield already have annual events that help them to connect with their customers. Royal Enfield Rider Mania is one of the major motorcycle events that takes place in Goa. TVS Motors, too, has opted for a similar strategy, and the Hosur-based brand will organize its first MotoSoul event on 18 and 19 October.