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Auto Expo 2023: Low on excitement

  • 17 Jan, 2023 |
  • 12:38 PM
  • Analysts at IIFL Securities attended the Auto Expo 2023 being held in Delhi-NCR. The event was relatively low on excitement, with most 2W ICE OEMs and few PV OEMs giving it a miss.

In the PV segment, the highlight was three new models (two launches, one EV concept) showcased by Maruti Suzuki. Tata Motors also showcased four new models but of those, three were EVs. Overall, Maruti has a busier launch pipeline (including Grand Vitara launched in H22022), relative to competition. Akin to the 2020 Auto Expo, the 2023 event also saw a long line-up of Electric 2W start-ups. Lastly, truck-makers showcased multiple Alternate Fuel products ranging from EV, Fuel cell EV, Hydrogen ICE and LNG. While most of these would become relevant 5-10 years down the line, it indicates that CV OEMs are technologically ready.

Maruti launches two new SUVs

Maruti launched the Jimny (offroader) and Fronx (Compact SUV). Both models are available for bookings at Maruti’s NEXA network. The pricing would be disclosed in due course. The Jimny is in a relatively niche category and takes on the Mahindra Thar. The Fronx is derived from the Baleno (hatchback) and does not completely shrug off the image of Baleno, despite the SUV positioning.

The Fronx may attract some of the potential Baleno customers. Best case, analysts at IIFL Securities believe these two models combined may clock 10k per month (net of cannibalization). In addition to the above, Maruti also unveiled EVX — an EV concept (good specs, 550km range), which will be launched in 2025.

Launch pipeline of other PV OEMs is light

In the period from 2020 to mid-2022, Maruti had a light new model launch pipeline. On the other hand, competitors had multiple model launches, especially in the SUV segment. Now, Maruti’s launch pipeline is busier compared to competition, with Grand Vitara, Jimny and Fronx. Tata Motors showcased four new models; however, three of these models are EVs. Hyundai/Kia also showcased EV models, with no new ICE unveilings. M&M did not participate in the Expo. Among other names, MG Motor and BYD showcased multiple models, with focus on EV and Alternate Fuels. 

2W ICE OEMs skipped the event; EV start-ups were galore

2W ICE OEMs such as Hero Moto, Honda, Bajaj, TVS and Royal Enfield did not participate in the event. The larger EV 2W OEMs such as Ola, Ather, Hero Electric and Okinawa also stayed away. However, there was a long lineup of Electric 2W start-ups, with offering across e-scooters and e-motorcycles. Many of these start-ups are clocking very small volumes, while some are yet to launch models.

Truck-makers displayed Alternate Fuel tech

In the CV space, Tata, Ashok, VECV and SML Isuzu participated. Truck-makers showcased multiple Alternate Fuel products ranging from EV, Fuel cell EV, Hydrogen ICE and LNG. While most of these would become relevant 5-10 years down the line, it gave us comfort that the CV OEMs are technologically ready. Analysts at IIFL Securities believe LCVs may see earlier adoption of electrification, compared to heavy trucks. Among others, Switch (Ashok’s sub) showcased an electric LCV.

 

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