New Delhi, September 10: Finance Minister Nirmala Sitharaman on Tuesday blamed the millennials and their mindset for the fall in the auto sector. The Finance Minister added that the Automobile industry has been affected by the BS6 norms. Sitharaman also said that millennials prefer cab aggregrators and ride hailing services like Ola and Uber rather than "committing to buying an automobile." Earlier, looking at the ongoing crisis in the auto industry, Finance Minister Nirmala Sitharaman said the government will respond to demands of the automobile sector. Economic Crisis Grips Auto Sector Completely, Passenger Vehicle Sales in August Dip by 31.57% Vis-a-Vis 2018, Suffer Worst Drop in Over Two Decades.
According to a report in Mint, she said, “We are conscious that we need to respond. The Finance Ministry has already considered some suggestions of the automakers," while addressing the media on the National Democratic Alliance (NDA) government’s 100 days at the office while presenting a report card. Auto Sector Crisis: Nirmala Sitharaman Says Government Will Respond to Demands of Automobile Industry.
Nirmala Sitharaman's comment on the BSVI vehicles were earlier echoed by the Society of Indian Automobile Manufacturers President Rajan Wadhera. He had said that the road ahead for the Indian automobile industry seems to be "difficult" due to the upcoming transition from BS-IV emission norms to BS-VI.
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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
The automobile industry registered a fall in the sales in August as well as all major players reported major decline in their respective sales. Tata Motors reported a 49 percent slump in its domestic sales on a year-on-year (YoY) basis at 29,140 units.
Maruti Suzuki India reported a 32.7 per cent decline in its vehicle sales last month YoY. Of the total off-take, domestic sales fell nearly 36 percent to 94,728 automobiles. Domestic passenger vehicle sales were down 36.1 per cent at 93,173 units from 1,45,895 during the corresponding month last year, Maruti Suzuki said in a statement. Similarly, Mahindra and Mahindra's (M&M) local sales declined 26 per cent YoY. (With IANS Inputs)