Finance Minister Nirmala Sitharaman on Tuesday said the slowdown in In automobile industry is because of the “mindset of millennials” as they prefer to travel through app-based cab services rather than buying their own vehicle.
She was quoted as saying by ANI:
“Automobile industry is now affected by BS6 and the mindset of millennials, who now prefer to have Ola or Uber rather than committing to buying an automobile.”
Sitharaman, who was briefing reporters on the BJP’s campaign, ‘100 days of Bold initiatives and decisive actions taken by the Government,’ cited the newly introduced BS-VI emission norms and the millennial mindset as the cause of the drop in sales.
The worst-ever drop was witnessed in August across categories, with passenger car sales going down by as much as 41.09 per cent, the industry body SIAM reported in its data.
The sale of vehicles in all categories, including passenger vehicles, two-wheelers and commercial vehicles stood at 18,21,490 units in August, while last year in the same month it was 23,82,436 units — a drop of 23.55 per cent.
The Supreme Court, last year, had ordered a ban on the sale of Bharat Stage (BS) IV vehicles across the country beginning April 1, 2020. The BS emission standards are set by the government to regulate the output of air pollutants from the internal combustion engine equipment, including in motor vehicles.
The finance minister addressing the issue of lowered sales and job losses in the auto sector said the government departments have been allowed to buy new vehicles. Automobiles purchased till March 31, 2020, can avail benefits of additional depreciation of 15 per cent with the total depreciation up to 30 per cent.
The auto industry makes for nearly half of India’s manufacturing output while employing over 3.5 crore people directly and indirectly.
(with ANI inputs)