Friday, 20 September, 2019

FM Blames "Millennial Mindset" For Auto Crisis, Desi Twitter Responds With Sarcasm!

What’s causing auto industry slowdown? Millennials, among other things: FM Sitharaman Govt will respond to automobile industrys demand, says FM Sitharaman
Ginger Lawrence | 11 September, 2019, 10:28

"These include BS6 (Bharat Stage 6) movement, the registration fee issue that has been deferred till June and the mindset of millennials, who are now preferring not to commit EMIs to buy automobiles but prefer to use Ola or Uber or take the metro".

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". "Millenials are using Ola-Uber instead of buying new vehicles", she said. Check out how Twitterati reacted to the auto industry slowdown with their comments.

Minister of Finance and Corporate Affairs Nirmala Sitharaman on Tuesday addressed a press conference in Chennai to highlight the achievements of the Modi 2.0 government and talked about the abrogation of Article 370, 35A and rolling out of GST and Income tax reforms.

Sitharaman was addressing the media in Chennai on NDA government completing 100 days of its second term. She said the government is conscious on the need to respond to check the auto slowdown.

In an effort to arrest the slowdown in the economy, Sitharaman met representatives of several industries in July to understand the challenges faced by them.

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Domestic sales of passenger vehicles fell 31.6 per cent year-on-year to 196,524 units in August, according to the data released by the Society of Indian Automobile Manufacturers (Siam). India saw the lowest GDP growth of 5% in six years in Q1.

"I can not singularly take a decision on GST rate cut on automobiles".

Auto sales suffered their biggest monthly drop on record in August, as deliveries fell 41% from a year earlier to 115,957 units. Running of BS-IV vehicles purchased up to March 31, 2020, has also been allowed. Pointing out that it's part of the growth cycle, the FM said, "I am not going to harp on the earlier times when it has happened. We are working on this and will soon take a decision", she said.

"Today the economy needs money and it can come through increased consumption because of government spending and that can be best spent through infrastructure", she added.

"The idea to merge the banks was so that all banks can benefit from each other", she said, adding that she is not aware of any unhappiness yet among the bank employees about the mergers. "Our full focus now is on how it will rise", she noted.