Millennials Prefer Ola & Uber to New Cars: Nirmala Sitharaman

Responding to the dip in auto sales, the finance minister said that millennials prefer using Ola and Uber to buying a vehicle. On Monday, data revealed that India’s passenger vehicle industry recorded its worst sales performance in more than two decades in August. On Tuesday, finance minister Nirmala Sitharaman came up with an explanation: a “change in people’s mindset”.
According to BloombergQuint, the minister told reporters in Chennai that “some studies show that millennials do not want to commit to an equated monthly instalment to buy a vehicle, and prefer Ola, Uber and metro services”.
The government has been struggling with an economic slowdown with quarterly growth slowing to a six-year low of 5% during April-June this year. The auto industry is among the worst-hit sectors with sales falling to an over two decade low, prompting companies to cut production and lay off workers.
“There are multiple factors impacting slowdown. Some buyers want to wait for BS-VI. We also understand that millennials don’t want to lock themselves up with EMIs on auto loans and hence prefer Ola or Uber or metro (trains). We are listening to everyone,” Sitharaman said at a press meet to list out the government’s achievements in the first 100 days of its second term.
Sitharaman’s comment on changing consumer behaviour is similar to the views expressed by industry chiefs in recent weeks. At the opening session of the auto industry body Siam’s annual convention last week, top banker Uday Kotak said that his son is “not ready to buy a new car, but prefers to hire an Ola or Uber” for his commute.

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