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India's Motor Show What are the characteristics of the major manufacturers' pavilion exhibits?　～Review of Auto Expo 2020 (Part 1)

• Release date: Mar 25, 2020
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The presence of Chinese manufacturers as seen in 2020 at the Auto Expo

Not only Japanese manufacturers such as Toyota, Honda, and Yamaha, but also luxury car brands such as BMW and Audi decided not to exhibit at this year's Auto Expo. Among them, four Korean and Chinese manufacturers, Hyundai, KIA, MG, and GWM (Great Wall Motor), took up an entire hall to exhibit their products and promote their world view.

[Venue Layout]

(Source: From Auto Expo website) This year, Intage India interviewed 30 Auto Expo visitors about the pavilions that left the greatest impression on them. The results are shown in the chart below.

[The most attractive pavilion]

By country, 12 out of 30 visitors said that the Chinese manufacturers' pavilions of MG and GWM left the greatest impression on them. The reasons for this were the high level of attractiveness of the vehicles themselves on display, such as the large number of SUVs, which are very popular in India, and the advanced impression created by the large number of EVs on display. In addition to these factors, the fact that the pavilions were well-designed with a lot of investment in the stage, decorations, and staging must have been another reason for the interest.

A representative of a competitor exhibiting at the expo said, "I think MG and GWM have invested twice as much as we have," and I'm sure their competitors felt threatened by the momentum of Chinese manufacturers. On the other hand, there were only four Korean manufacturers and two Japanese manufacturers, including Maruti Suzuki. It can be said that Chinese manufacturers had a great impact on this expo.

What is your image of Chinese cars?

From a Japanese perspective, one might think that Chinese cars are inferior to Japanese cars in terms of technology and safety performance, and that there would be concerns about quality. However, when we interviewed visitors to the show, we found that, contrary to what we had assumed, there were no concerns about quality, and in fact, visitors said that the cars offered high value for money. Here are some of the comments

"For me, it is important whether I like the car itself or not, and it doesn't matter which country's brand it is. If a Chinese manufacturer sells a price-to-value car in India, is there any reason not to buy it? I know that cars from Japanese manufacturers are very high quality, but I think they are overpriced."
"It would be attractive to have the same features and accessories that are found in high-end German cars in an affordable car."
"I've never had any problems using Chinese branded smartphones like Oppo or Xiaomi. I never feel uneasy about the quality just because they are Chinese products."

Of course, as a new brand entering the market, the number of dealers and service centers are fewer than those of established manufacturers, and some voiced concerns about support in case of breakdowns, whether the quality will remain the same after a few years as when they were purchased, and whether they will have resale value. However, Indian consumers find Korean and Chinese cars to be more attractive than these concerns.

Looking at the changes in sales volume over the past year, while Toyota and Honda have experienced a significant decline, newcomer KIA has achieved sales volume that exceeds the combined total of Toyota and Honda, and MG has grown to a level that is close to that of both Japanese automakers. These sales conditions may be one of the factors that are helping to dispel concerns about Korean and Chinese cars.

[Sales volume results (Jan. 2019 vs. Jan. 2020)]

(Source: Compiled by us from SIAM data)

Introduction of pavilions of major manufacturers

In addition to the four Chinese and Korean manufacturers, the pavilions of India's Tata and the Japanese Maruti Suzuki will be introduced with photos.

[MG]

In the same way as KIA, MG, which entered the market in 2019, is selling the HECTOR SUV and ZS EV, and at this expo, in addition to the two SUV models, they exhibited a variety of body types such as sedans, hatchbacks, and MPVs, showing that they are trying to capture a diverse customer base. As for EVs, not only were a variety of SUV and sedan models displayed, but also a model showing the mechanism of electric power and a model showing how it would look like to install a charging spot at home.
In addition, the overall taste of the exhibition utilized the brand's assets as a British sports car brand, displaying classic cars and recreating British cityscapes to create a world view that did not give the impression that it was a Chinese brand.

(Comment from a visitor)
"I thought the display of vintage cars and the reproduction of a good old British cityscape was very good."
"I got the impression that there were a lot of EVs on display, and I thought the display of EV mechanisms stood out and was good."

[GWM（Great Wall Motor）]

Although it has not yet been launched in India, the GWM has attracted a great deal of attention. The brand seems to specialize in SUVs, which are very popular in the Indian market, and presented a wide variety of options, from models with a rugged, masculine appearance that Indians like to drive to models with curvy body lines reminiscent of European luxury cars. In addition, by displaying a map showing production and sales bases around the world, as well as the history of the company's overseas bases, the company consciously appealed to visitors as a "global brand" rather than a Chinese manufacturer.
In addition, the largest number of electric vehicles were exhibited, and the advanced nature of these vehicles was demonstrated through test drives of automated driving systems. In addition, there was a display of airbags and other mechanisms, as well as research and development of EV batteries, giving the impression that safety and security were not neglected.
In the pavilion, visitors were asked to evaluate the designs of the concept cars on display, which showed that they were trying to understand the preferences of the Indian people.

(Comment from a visitor)
"The GWM pavilion was very eye-catching with its colorful lights."
"I found out that GWM is the market leader in the SUV category in the global market, which made me interested in the brand. I would like to see it at the dealership when it is launched."
"I think the GWM was the only one that displayed safety features. The airbag exhibit was easy to understand."

[HYUNDAI]

In addition to the newly launched engine cars, concept cars, and electric cars, I had the impression that the exhibition was well-balanced in terms of services such as connected and online sales. The unique exhibits such as fuel cell vehicles and walking car concepts that were not available at other companies were eye-catching, but what particularly caught the attention of visitors was the announcement of the new CRETA model with Bollywood star Shahrukh Khan as the brand ambassador. Online shopping for cars was also proposed, showing that the company is trying to attract non-existing users, such as younger people who have more access to digital information and areas where dealers are weak.

(Comment from a visitor)
"I bought CRETA a few months ago and honestly regret it. The CERATA presented this time has a face that I like. If I had known that this model was going to be released, I would have postponed my purchase..."
"I thought that the Hyundai CoonectApp (Blue link) was interactive and had features that I would want."

[KIA]

KIA, which entered the market in 2019, used a lot of space to display its currently launched vehicles, although it also displayed upcoming vehicles such as the SONET concept car and the EVs NIRO and SOUL. A variety of grades of SELTOS, a hot-selling SUV, and CARNIVAL, an MPV launched in January, were displayed, and it was apparent that they were being used as showcases.
In addition, a booth for connected services was also prepared. A Galaxy Watch was given away to anyone who purchased a KIA vehicle, offering a service that links the car, smartphone, and smartwatch. The strategy to capture customers through collaboration between Korean manufacturers is an example of leveraging the assets of both companies, and I felt that Japanese manufacturers may also be able to utilize this strategy.

(Visitor's comment)
"I thought that the exhibition of various models of SELTOS and CARNIVAL was the focus of this pavilion, and when I saw the SONET concept car and EV, I felt that KIA is a very innovative brand."
"I got the impression that the pavilion was packed with various new technologies. I think I understand why they are successful in India after coming to this expo."

[Tata]

Tata, a local company in India, exhibited not only passenger cars but also commercial vehicles. The entire pavilion was covered with greenery, giving an eco-friendly impression. The main theme of the pavilion was CESS (Connected/ Electric/ Sharing/ Safety), which gave the impression of being advanced. EVs for commercial vehicles such as buses and trucks as well as passenger cars were on display, and the test-ride space for electric vehicles (ALTOZ EV) set up on the second floor of the pavilion attracted the interest of many visitors.
In addition, Tata was the only company I could find that was exhibiting Sharing (new car leasing) and introducing connected apps for commercial vehicles such as carriers.

(Visitor's comment)
"Tata's pavilion was a surprise. Grass-like carpets were placed all over the pavilion, giving the message that they are an eco-friendly manufacturer and will sell eco-friendly cars."
"I was amazed by the test drive track on the second floor. I've been to Auto Expo many times before, but I've never seen a display like that before."

[Maruti Suzuki]

Among the major Japanese manufacturers, Maruti Suzuki was the only one to exhibit at the show. Although they exhibited the FUTURO-e concept car, the majority of the exhibits were new models of their best-selling models.
In terms of electrification, they exhibited one EV concept car, but focused on Smart Hybrid. Overall, rather than presenting an image of the "future" of automobiles, the emphasis was on proposing realistic alternatives that are available "now", which left me with the impression that the show lacked novelty compared to other major manufacturers. (Comments from visitors)

(Visitor's comment)
"As the best-selling manufacturer in India, I think there were a lot of familiar cars on display."
"The Jimny is an old model but very famous. It was exciting to see the new model." In this article, we reported on the pavilion exhibits of major manufacturers at Auto Expo 2020. In the second part of the report, we will focus on the advanced technology exhibits seen at Auto Expo 2020.

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