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Millennials preference for OLA, UBER also led to auto sector slowdown: FM

Finance Minister Nirmala Sitharaman said that the auto sector had been affected by several things, including movement towards BS-VI norms and registration-related matters and (also) change in mindsets.

Finance Minister Nirmala Sitharaman
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Published : Sep 11, 2019, 12:50 PM IST

Chennai: Finance Minister Nirmala Sitharaman on 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 mindset of the millennials not to commit any EMIs (equated monthly installments) towards buying an automobile and instead taking OLA, UBER or the Metro (train) services.

Read more:Auto sector hit hard by economic slowdown: Analyst

"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.

Chennai: Finance Minister Nirmala Sitharaman on 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 mindset of the millennials not to commit any EMIs (equated monthly installments) towards buying an automobile and instead taking OLA, UBER or the Metro (train) services.

Read more:Auto sector hit hard by economic slowdown: Analyst

"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.

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Change in millenials' mindset to prefer OLA, UBER also led to
automobile sector slowdown: FM
Chennai, Sep 10 (PTI): 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. PTI VIJ
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