Millennial mindset of using Ola, Uber is adversely affecting auto sector: FM
11 Septembre, 2019, 01:27 | Auteur: Auguste Feret
Describing abrogation of Article 370 as a path breaking decision of the Centre, Union finance ministerNirmala Sitharaman on Tuesday said the Congress should speak in one voice on Jammu and Kashmir and matters of national security.
The fitment committee, comprising state and central officers, met last week and estimated that of the overall sum, Rs 22,000 crore will be lost if the rate is cut for auto parts alone. She listed out switch over to BS VI emission norms and registration fee related matter (which the government postponed later) as reasons for the auto sector slowdown.
Being in the automobile capital, Chennai, the minister when peppered with questions on the slowdown in the sector, said to be the worst in almost two decades, said, "It is true that the automobile sector in India had a good time till two years ago, there was definitely a good upward trajectory for automobile sector".
"Some studies do tell us, the mindsets of the millennials, who are now preferring not to commit an EMI towards buying an automobile instead would prefer to have Ola or Uber or take the metro", she said. Overall passenger auto sales dropped by a significant 31.57 per cent last month with 196,524 units sold compared to 287,198 units in August 2018. The percentage sale of two-wheelers is at a three-year low.
The sector slowdown has led to companies resorting to production cuts even as many dealers have laid off employees or shut shop themselves.
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"We are working with all the sectors across the country to understand the problem and taking measures also". Automobiles purchased till March 31 next year can avail the benefit of additional depreciation of 15 per cent with total depreciation up to 30 per cent.
"It is useful for us to remember that dips and raises in GDP growth happens".
Responding to the criticism of the government accessing the accumulated reserves of the Reserve Bank of India, she said it had been accessed by the governments in the past too.
Finance MinisterNirmalaSitharaman today shrugged off questions on the GDP growth declining to 5 per cent in the first quarter, saying the ups and down are part of the growth process and the government is responding to the current economic challenges to revive demand and consumption in the country.
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