Millennial mindset is a factor influencing auto sector: Nirmala Sitharaman

Millenials preference for Ola Uber responsible for auto crisis says FM Nirmala Sitharaman

Millenials preference for Ola Uber responsible for auto crisis says FM Nirmala Sitharaman

While the Finance Minister did not give any clarity on what the Centre is doing to address the slowdown, she said that the government is talking to the industry to see how best it can help them.

Sitharaman surprised many by blaming the millennials for the slowdown. She, however, added that some of the industry suggestions had already been considered.

India's monthly passenger vehicle and auto sales recorded their steepest fall ever in August, according to data released by a top industry body, underscoring the unprecedented slowdown in the sector. The industry saw a 12.25% decline in production in April-August 2019 compared to previous year.

The slump in auto sales had led to massive job loss in the sector.

The total revenue from the auto sector is pegged at about Rs 3 trillion annually. Addressing the 42nd session of the UNHRC at Geneva, Pakistan on Tuesday said the UN Human Rights Council, the repository of the world's conscience on human rights, must not remain "indifferent" to the situation in Kashmir after India revoked Jammu and Kashmir's special status. Some studies show that millennials prefer not to commit to an EMI and instead prefer having Ola or Uber or taking the metro.

Vehicle sales across categories, including passenger vehicles (PVs) and two-wheelers and commercial vehicles (CVs) stood at 18,21,490 units last month, as against 23,82,436 units in August 2018, a fall of 23.55 per cent.

According to data released by SIAM, two-wheeler sales - a key barometer of the rural economy - also dropped by 22.24 per cent to 1,514,196 units against 1,947,304 units in the same period previous year. Wary of piling inventory, companies resorted to holding onto their stock.

She said the government is working on a few steps for the auto component industry. "Two major announcements were made in August and September and two more are expected", she said. 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.

On the dip in GDP growth, she said, "I am not underestimating it or sitting here without responding to do something to boost it to grow better. But it does happen".

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. "The effective date of mergers will be decided by the respective board of directors", said Sitharaman. It's based on a formula that has been arrived at by the relevant committees, she said. A growing economy needs good banks.

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