FM Nirmala Sitharaman Blames Mindset Of Cab-Addict Millennials For Automobile Slowdown
Finance Minister Nirmala Sitharaman said the slowdown in auto sales is not just because of a higher tax but also due to several reasons including the change in people&rsquos mindset. She also told reporters that the sector has been affected by the transition to Bharat Stage VI emission norms and a higher registration fee.
Addressing the depressing situation of the automobile industry slowdown, Finance Minister Nirmala Sitharaman today said the slowdown in auto sales is not just because of a higher tax but also due to several reasons including the change in people¡¯s mindset who prefer cab aggregators like Ola, Uber and public transportation.
Blaming millennials, Sitharaman said, ¡°The automobile industry in India did have its good time, at least till two years ago. There was definitely a good upward trajectory for the automobile sector. Some studies show that millennials do not want to commit to an equated monthly installment to buy a vehicle, and prefer Ola, Uber and metro services.¡±
She also told reporters that the sector has been affected by the transition to Bharat Stage VI emission norms and a higher registration fee.
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Sitharaman said, ¡°We are conscious that we need to respond,¡± adding that the finance ministry has already considered some suggestions of automakers.
The finance minister was addressing the media on the National Democratic Alliance (NDA) government¡¯s 100 days at office in its second consecutive term while presenting a report card.
India is witnessing an economic slowdown in the absence of concrete policies for revival. In over last six years, India grew at its lowest pace at 5 per cent during April-June. The economy has been met with amid sluggish demand, slowdown private investment, stress in the non-banking financial companies (NBFCs), downturn in the automobile, and job losses.
Consumer sentiments are low in India while economic slowdown remains persistent and they have led major automobile manufacturers -- Tata, Mahindra and Maruti -- to report significant decline in sales during August.
The Society of Indian Automobile Manufacturers (SIAM) recently came forward to state that sales report coming out from various companies "for August has been dismal" with over "30 per cent erosion of sales for passenger vehicles".
