‘Slump in Auto sector as millennial prefer Ola, Uber to buying car’ says FM
Due to the slowdown in the auto sector, the country’s auto industry is facing the lowest sales in the last 21 years and the lowest sales have been recorded in August month after 1997-98. Meanwhile, Finance Minister Nirmala Sitharaman herself has given a clarification on behalf of the government about the slump in the auto industry.
Finance Minister’s clarification on recession
Nirmala Sitharaman says that the auto sector is the most affected by the auto-mobile industry BS6 standard and the mind set of Millennials. According to Sitharaman, nowadays, Millennial’s are giving importance to Ola-Uber instead of buying a car.
People are not buying cars because of Ola-Uber
In this way, the finance minister has blamed the change in people’s mindsets and the BS-6 model for the decline of the auto sector. The Finance Minister said that many factors are responsible for the condition of the automobile sector, including the BS-6 movement, matters related to registration fees and people’s mindsets.
People want to escape the burden of EMI: Finance Minister
In Chennai, Nirmala Sitharaman said that nowadays people prefer to go to Ola-Uber than buy a car and pay EMI. However, she admitted that the auto sector is going through a bad phase and a solution should be found soon. The finance minister said these things during a press conference in Chennai to mark the completion of 100 days of the second term of the Modi government.
Apart from this, Finance Minister Nirmala Sitharaman said that the government is serious about the problems of all sectors, and meaningful steps are being taken and further steps will be taken. She told that the government made two big announcements in August and September to find a solution to this, and more announcements will be made if needed in future.
Big decline in auto sector after two decades
Significantly, due to the slowdown in the auto sector, the domestic market saw a decline of 23.55 percent in vehicle sales in August. Such a decline was seen earlier in December 2000, when sales had fallen by 21.81 percent.
