The 2015 Johannesburg Motor Show has been cancelled. There was a lot of doubt around this year’s show as many key manufacturers expressed concerns over costs and return on investment.
A number of manufacturers were absent fromthe 2013 Johannesburg Motor Show citing lack of product and lack of budget. Volvo, for example, embarked on a countrywide tour to show off its passenger and commercial products instead of partaking in the motor show. I can understand the value for money concerns as its expensive to bring in concept vehicles as well as build the actual stands. Let’s not forget the cost per square metre either.
NAAMSA (National Association of Automobile Manufacturers of SA) official statement:
The costs of automotive exhibitions have risen disproportionately and this has called into question the return on investment for exhibitors. Internationally, in recent years, concerns about affordability and return on investment for exhibitors have led to the cancellation of automotive exhibitions in a number of countries. Additional considerations in the decision not to proceed with this years show include the fact that the event scheduled for October, 2015 clashes with the Rugby World Cup in the United Kingdom and the E-mobility month in Sandton over that time. Moreover, the economic and financial climate in South Africa currently has impacted on trading conditions in the automotive sector and has resulted in substantial pressure on margins throughout the automotive value chain.
The possibility of a show in 2016 will be considered by the end of June this year. South African Shows Messe Frankfurt, the show management company, in consultation with the industrys marketing and sales experts, have been tasked to formulate proposals and a strategic action plan to enhance the value proposition for exhibitors and to increase substantially the return on investment for participants.
In essence, NAAMSA has requested its joint venture partners, South African Shows Messe Frankfurt, to formulate proposals that would ensure a sustainable, financially attractive model for possible future Johannesburg International Motor shows. At this stage, the industry does not intend to provide further comment on these developments.