Millennials Prefer Ola, Uber to New Cars: Nirmala Sitharaman On Auto Sector Slowdown
On the slowdown in the auto industry, Finance Minister Nirmala Sitharaman said that there has been a change in the mindset of millennials as they don’t’ want to purchase a new vehicle and instead prefer using cab services like Ola or Uber.
File photo of Finance Minister Nirmala Sitharaman.
The Indian automotive industry is going through one of its worst slowdown of the last two decades with inventory pile up, job losses and companies failing to generate interest amongst buyers despite offering discounts and updating their current offerings with updates. Recently, Finance Minister Nirmala Sitharaman on the topic of the slowdown in the industry mentioned that there has been a change in the mindset of people as millennials don’t’ want to commit towards the EMI of an automobile and instead prefer using cab services like Ola or Uber.
Finance Minister Nirmala Sitharaman: Automobile industry is now affected by BS6 and the mindsets of millennial, who now prefer to have Ola or Uber rather than committing to buying an automobile pic.twitter.com/6KEecyopH3— ANI (@ANI) September 10, 2019
It is important to note that the Finance Minister mentioned this as one of the reasons as to why the industry is going through such a bad phase. Other points included factors like the transition towards the BS-VI emission norm and the proposed hike in the registration fee. The Minister also assured that more big announcements are on the way to give the industry a much-needed push.
As for the Indian auto industry, it has registered a Decline for the tenth consecutive month with domestic passenger vehicle (PV) sales dropping 30.9 per cent to 1,95,558 units in August, from 2,82,809 units in the same period a year ago.
In terms of year-on-year comparison, India's largest car manufacturer Maruti Suzuki saw a dip of 36 per cent from 1,45,624 units last year to 39,173 models sold this year. However, the heaviest blow was to Tata Motors which reported a decline of 60 per cent in August 2019 with a sale of just 7,316 models as compared to the 18,420 models last year.
Compared to the performance last year, Skoda suffered the least dip with 12.5 per cent after it sold 1,164 models this year as compared to the 1,330 models sold in 2018. Followed by Korean manufacturer Hyundai which reported a loss of 17 per cent since last year a sale of 13,150 models this year as compared to the 45,801 models sold last year.
Honda continued its negative trajectory with a Y-o-Y decline of 51.3 per cent while Nissan and Fiat trailed closely with 54.5 per cent and 56.5 per cent respectively. Renault dipped 13.1 per cent this year while Toyota suffered a loss of 24.3 per cent.
Vehicle sales across categories registered a decline of 18.71 per cent to 18,25,148 units from 22,45,223 units in July 2018, it added. In fact, all vehicle categories witnessed a decline in sales during the month.
(With inputs from PTI)
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