Economy

What’s causing auto industry slowdown? Millennials, among other things: FM Sitharaman

What’s causing auto industry slowdown? Millennials, among other things: FM Sitharaman”

The automobile sector in the country is facing the biggest slowdown in sales in almost two decades, with sales continuously falling for the past nine quarters. Ms. Sitharaman said the factors included the transition to BS VI vehicles, registration fees and also the mindsets of millennials.

Responding to a query on the industry's argument that tax cuts on automobiles can boost demand, Sitharaman said: "That is a very fine argument to give and I agree, but it is also a truth - and I am not negating anything that you are saying - that the automobile industry in India did have its good times at least till one-and-a-half years ago, till two years ago".

For the fiscal so far, passenger vehicle sales has declined by 23.54 percent at 11,09,930 units, commercial vehicles by 19 per cent at 317,061 units and two-wheelers at 15,14,196 units, 14.85 per cent less than previous year.

Addressing a press conference in Chennai, she said, "Automobile sector, in particular, has been affected by several things".

Finance Minister Nirmala Sitharaman has defended the dip in GDP growth to over six-year low of five per cent in April-June quarter terming it as "cyclical" and said that the fall has not impacted the people as the government has ensured the inflation remains below four per cent. The Finance Minister also assured that the government is aware of the need to respond to the troubles in the auto sector. She said that work is going on on the suggestions received from the industry for auto components. "I am not underestimating it and we are not sitting without responding to do something to boost it, to grow better", she said. Some studies show that millennials prefer not to commit to an EMI and instead prefer having Ola or Uber or taking the metro.

Carmakers have sought an immediate cut in GST on vehicles to revive sales during the crucial festive season, after auto sales declined for the 10th straight month.

Sitharaman said the government was working a package for the housing sector and would be announcing it "sooner rather than later". "Our full focus now is on how it will rise".

Also she lifted the ban on purchase of vehicles by government departments and allowed additional 15 per cent depreciation on vehicles acquired till March 2020.

While stating that bank mergers were announced for the banks to benefit from each other, the FM said the date of merger had to be decided by the boards of respective banks.



Like this

loading...
loading...

Latest


11 September 2019
Jon Gruden celebrated with 'black hole' after win
Derek Carr connected with his athletic tight end on two passes that went for 36 yards on the Raiders' first possession. Sanders had five catches for 86 yards in his return from a torn Achilles tendon.

11 September 2019
U.S. retain Walker Cup with win at Royal Liverpool
Team USA won the Walker Cup for the second straight time, and the first time overseas since winning at Royal County Down in 2007.

11 September 2019
Last Day of The Dinosaurs Revealed in Stunning Glimpse of Asteroid Disaster
The enormous Chicxulub crater is a remnant of one of the most consequential days in the history of life on Earth. However, one of the most important takeaways from the research is what was missing from the core samples.

11 September 2019
No punishment for 76ers Mike Scott after fight with Eagles fans
Donald Penn and Ereck Flowers were asked to hold down the left side of the line for the Redskins, and they did their job well. Will the Redskins get revenge this time around? Gruden received some flack after not dressing Peterson this past Sunday.

11 September 2019
Apple makes no mention of Homekit at iPhone event
Especially because beyond their displays and camera modules, the basic iPhone 11 and the Pro devices are remarkably similar. The iPhone 11 is an update to the iPhone XR, while the 11 Pro and Pro Max are updates to the iPhone XS and XS Max.

11 September 2019
What next in Britain's Brexit crisis?
But the major opposition Labour social gathering explained it would only back an election when "no offer" was off the desk. Two-thirds of MPs have to guidance an early election, but parliament is now suspended until October 14.

11 September 2019
Apple unveils Apple Watch Series 5 with always-on display
However, Apple has developed an "ultra-low-power" display driver and more efficient power management software to compensate. Apple is also continuing its health focus for the watch, which now includes menstrual cycle tracking as part of watchOS 6 .

11 September 2019
Australian Federal Police savagely troll England cricket team after Ashes defeat
England needed to bat out the final day at Old Trafford to keep the Ashes series alive and set up a decider at The Oval. All-rounder Ben Stokes will be assessed over his fitness to bowl after struggling with a shoulder problem.

10 September 2019
US Charges Chinese Professor Accused of Stealing Trade Secrets for Huawei
Huang, who had worked for the US Huawei subsidiary, resigned from the firm in 2013 and three days later he helped to start CNEX. The US Commerce Department, citing unidentified export violation concerns, seized the equipment while it was in transit.

10 September 2019
Hurricane Dorian Was Fueled by The Effects of Climate Change
In New Brunswick, more than 80,000 homes and businesses were without electricity at the peak of the storm on Saturday. One thing is certain however, Dorian will go down as one of the biggest storms to hit Nova Scotia and the Maritimes.