After six long years, the floor rent rates at the Delhi Auto Expo have been revised. One would be shocked to know that the revised rates, according to industry sources, stand at Rs 11,500 sq mt for non members of SIAM – Society of Indian Automobile Manufacturers.
Compared to other Auto and Motor Shows around the world, Delhi Auto Expo revised rates are second only to Shanghai Motor Show where floor rent rates this year stood at Rs 15,000 per sq mt. This means that floor rents at Indian and Chinese Auto Shows are the most expensive in the world today.
Floor rent rates at this year’s European Auto Shows of Frankfurt and Geneva stood at Rs 11,000 sq mt and Rs 6,500 per sq mt respectively. Similarly, Detroit Motor Show sold their display space at Rs 5,000 per sq mt only. Delhi Auto Expo attracts more than a million people every year.
Talking about the reason behind increasing floor rent rates at Delhi Auto Expo, an official from CII – Confederation of Indian Industry, said, “The rentals are not market-oriented but depend on the cost of the venue – our costs have gone up 35 per cent from the last time. The demand (for space) this time has been three times that is available at Pragati Maidan. We expect around one lakh people more to turn up this time.”
Delhi Auto Expo is held at the famous Pragati Maidan in Delhi. Government of India, which owns Pragati Maidan, has increased the basic rent for Pragati Maidan three fold. Another reason is that the number of companies and car manufacturers, who want display area at the Delhi Auto Expo, too has increased.
Talking about how the display space at the Delhi Auto Expo was distributed, SIAM official stated, “The main problem was that we could not expand the fair area, though we even tried alternative locations. We had to ration space as per a formula, some premium carmakers wanted space but had to be refused.”
2012 Delhi Expo is scheduled to be exhibited from 5-11 January 2012, of which open display for general public will begin from 7th January 2011. CII and SIAM are the official organizers of Delhi Auto Expo this time around, and are expected to generate Rs 55 crore in revenue from the floor space they sell. To visit official site of Delhi Auto Expo, click here.