Wednesday, February 8, 2023
HomeEconomyMillennials' preference for Ola, Uber added to auto sector slowdown: Nirmala Sitharaman

Millennials’ preference for Ola, Uber added to auto sector slowdown: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said several factors have led to the slowdown, and cited studies that said there was a change in the mindset of millenials when it comes to transport.

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Chennai: Finance Minister Nirmala Sitharaman Tuesday said the slowdown in the automobile sector was due to many factors like the change in mindset of millennials,who now prefer taxi aggregators like OLA and UBER instead of committing for monthly installments to own a car.

Sitharaman said the automobile industry did have its “good times” till two years ago.

“It was definitely a good upward trajectory for the automobile sector”, she told reporters.

The minister said the sector had been affected by several things, including movement towards BS-VI norms and registration related matters and (also) change in mindsets.

She said some studies had revealed that there was a change in the the mindset of the millenials not to commit any EMIs (equated monthly installments) towards buying an automobile and instead taking OLA, UBER or the Metro (train) services.

“So, a whole lot of factors are influencing the automobile sector. We are all seized of the problem. we will try to solve it”, she said.

The Bharat Stage VI (or BS-VI) emission norm will come into force from 1 April 2020 across the country. Currently, vehicles conform to BS-IV emission standards.

On August 23, in a bid to address the slowdown in the auto sector, Sitharaman had announced lifting the ban on purchase of vehicles by government departments and allowed an additional 15 per cent depreciation on vehicles acquired from now till March 2020.

Also, the government clarified that BS-IV vehicles purchased up to March 2020 would remain operational for the entire period of registration, while also considering various measures, including scrappage policy to boost demand.


Also read: Nirmala Sitharaman must stop stonewalling questions on slowdown. Denial mode isn’t an option


 

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6 COMMENTS

  1. All this making fun of what she said, please look at the Nov 22, 2018 edition of The Economic Times. Maruti Suzuki has said exactly the same. Why don’t you go and make fun of Maruti?

  2. Nirmala bahen is correct . the people of india are not helping her run the economy. imagine if all the citizens of india pledged to buy a new car every day – to buy a new washing machine every year – to have more pizzas every day and eat out every day – to buy new scooters and bicycles every year and avail of hospital facilities once every year – build more toilets every year – double th eelectricity consumption of every household . Would our economy ever have been in this state . Impossible . we would reach 5 trillion $ in 4 years . Great thought

  3. Stand up comedian Kunal has rightly said Uber Ola are new Nehru. But SUMO from Bihar has claimed it is usual for economy to slow down during “Sawan Badho”. Sawan Ka Mahina vipaksh Machayay Shor😊 Sathaa party bola Na Kar hamey bore ☺️

  4. Modi II will be Indira Gandhi I circa 1971. Expect a severe economic crash similar to what happened in 1973, partly due to external factors but also due to internal factors. Indira Gandhi’s bank and corporate nationalization & money printing is Modi’s demonetization/GST. Balakot may well be Bangladesh liberation.

    Would Modi impose emergency like decree if things got more out of hand? Who is today’s JP?

  5. The most fantastic PR team has been at work for five years. It is now running into the brick wall of a comatose economy. Impervious to spin and make believe. Today Surat’s most prominent builder has committed suicide at his farm house. Brought back sad memories of the owner of CCD.

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