Millennials’ preference for Ola, Uber added to auto sector slowdown: Nirmala Sitharaman

Shreya

New Delhi, Sep 10: Amid the economic slowdown, Finance Minister Nirmala Sitharaman on Tuesday said that the government is considering other suggestions from the auto industry.

Sitharaman was addressing media on '100 Days of Bold Initiatives and Decisive Actions' of the government at 2 pm at Chennai.

"The automobile and components industry has been affected by BS6 and the mindsets of millennial, who now prefer to have Ola and Uber rather than committing to buying an automobile," said Sitharaman while addressing reporters.

Gross domestic product (GDP) in India grew at 5 per cent in April-June 2019, the slowest since 2013, on account of subdued economic activity in sectors, from services and manufacturing, to agriculture and construction.

The government announced a slew of measures in the past few weeks so as to boost growth and improve the investor sentiment. China grew at 6.2 per cent in the June quarter of the ongoing fiscal, according to its official data.

Also Read Auto industry slowdown worsens, August 2019 data shows alarming dip in sales

Sitharaman announced a partial rollback of the enhanced surcharge on foreign portfolio investors (FPI) levied in the Budget. The other measures included ICE (internal combustion engine) vehicles will coexist with EVs (electric vehicles) and that there is no phasing out of ICE vehicles, a fear expressed in certain quarters of the auto industry.

The government also announced mega consolidation in banking sector reducing 10 PSU banks into 4 and also infusing Rs 55,250 crore capital in many of them to enforce regulatory norm adherence.

The slump in auto sales had led to massive job loss in the sector. Automakers, parts manufacturers and dealers have laid off about 350,000 workers since April, Reuters reported.

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