Millennial mindset of using Ola, Uber affecting auto sector, says Nirmala Sitharaman

[hyperbole]

Emeki finance ministry correct portfolio na doubt?

Chennai: Finance Minister Nirmala Sitharaman on Tuesday stated that the mindsets of millennial were adversely affecting the automobile industry as they prefer to use radio taxi services instead of buying own vehicle.

“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.

Earlier today, Sitharaman had stated that the government led by Prime Minister Narendra Modi has taken landmark steps in its second term for India to emerge as a five trillion-dollar economy in the next five years amid a domestic and global slowdown.

On skidding sales and job losses in the automobile sector, the minister said that the government departments have been allowed to buy new vehicles. Automobiles purchased till March 31 next year can avail the benefit of additional depreciation of 15 per cent with total depreciation up to 30 per cent.

Besides BS-IV vehicles bought till March 31, next year will remain operational for their entire registration period.

It may be noted that the automobile sector has seen faltering sales in recent quarters.

Domestic passenger vehicle sales skidded for the 10th consecutive month, falling from 287,198 units in August last year to 196,524 units last month and registering a 31.57 per cent decline.

Sales of commercial vehicles were down 38.71 per cent to 51,897 units in August, SIAM said. Vehicle sales across categories registered a decline of 23.55 per cent to 1,821,490 units from 2,382,436 units in August 2018, it added.

The slowdown in auto sales also stems from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.

The auto industry accounts for nearly half of India’s manufacturing output and employs over 3.5 crore people directly and indirectly.

[tom bhayya]

Traffic fines drink and drive lu bayapadara mari youth ? 

[kothavani]

13 minutes ago, tom bhayya said:

Traffic fines drink and drive lu bayapadara mari youth ? 

minister emo poragalu Uber ekutunaadu antadi , uber gadu emo layoffs antadu naa M lodi emi avutundo e prapanchaniki

[r2d2]

BlameitonThaatha

[Spartan]

5 minutes ago, kothavani said:

minister emo poragalu Uber ekutunaadu antadi , uber gadu emo layoffs antadu naa M lodi emi avutundo e prapanchaniki

  good catch

[babu_bangaram]

This is true ....there is a drop in driving licence from high schoolers in USA ...... they all prefer Uber and Lime ...... to commute ....it is cheap and convenient and also they share the fare .....like 4 people share a cab fare then it become very very cheap ............

[Quickgun_murugan]

29 minutes ago, kothavani said:

minister emo poragalu Uber ekutunaadu antadi , uber gadu emo layoffs antadu naa M lodi emi avutundo e prapanchaniki

Lol

[CNR]

1 hour ago, hyperbole said:

Emeki finance ministry correct portfolio na doubt?

Chennai: Finance Minister Nirmala Sitharaman on Tuesday stated that the mindsets of millennial were adversely affecting the automobile industry as they prefer to use radio taxi services instead of buying own vehicle.

“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.

Earlier today, Sitharaman had stated that the government led by Prime Minister Narendra Modi has taken landmark steps in its second term for India to emerge as a five trillion-dollar economy in the next five years amid a domestic and global slowdown.

On skidding sales and job losses in the automobile sector, the minister said that the government departments have been allowed to buy new vehicles. Automobiles purchased till March 31 next year can avail the benefit of additional depreciation of 15 per cent with total depreciation up to 30 per cent.

Besides BS-IV vehicles bought till March 31, next year will remain operational for their entire registration period.

It may be noted that the automobile sector has seen faltering sales in recent quarters.

Domestic passenger vehicle sales skidded for the 10th consecutive month, falling from 287,198 units in August last year to 196,524 units last month and registering a 31.57 per cent decline.

Sales of commercial vehicles were down 38.71 per cent to 51,897 units in August, SIAM said. Vehicle sales across categories registered a decline of 23.55 per cent to 1,821,490 units from 2,382,436 units in August 2018, it added.

The slowdown in auto sales also stems from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.

The auto industry accounts for nearly half of India’s manufacturing output and employs over 3.5 crore people directly and indirectly.

Don't blame ola and uber in India. This reason make sense in western countries because they never used concept of sharing like autos uber and lyft revolutionized it, thus auto sales are less in western countries  . In India auto and rickshaws are popular from old age, car is only prestige for lower & lower middle class indian population.  This is purely economy slowdown in india caused sales to drop and may be exports to other countries also.

[lovemystate]

The blame hierarcy of bhakth govt:

a) First blame MMS govt

b) Second blame Gandhi family

c) Third blame nehru

d) Fourth blame population

e)Fifts blame democracy

f)Now blame " millineal mindset" and it does not even matter to bhakth that thaat category applies only to Americans

 

[timmy]

I hope she has enough data backing it up.

[lovemystate]

2 minutes ago, timmy said:

I hope she has enough data backing it up.

yemiledhu akkada ..Commercial Vehicles are even more down. "millenials" dont use them.

[timmy]

2 minutes ago, lovemystate said:

yemiledhu akkada ..Commercial Vehicles are even more down. "millenials" dont use them.

hmm! if this true repu real estate padipothe millenials prefer staying in hotels, or rented houses rather than buying ani antundhi emo 

[snoww]

 

[reality]

Idhi oka daddamma mokam di... idhi FM endho mana karma... economy ni MG chepisthoo DLM kathalu..

[hyperbole]

Just saw this my whatsapp

*Buying a Car* v/s *Hire* a Cab : 
A superb *Analysis* 

Any car  in india cost atleast Rs. 6,00,000
Scrap value after six year -  Rs. 1,00,000
Net amount goes in effective Life of six year  Rs. 5,00,000

Nos of days of six yr is 2200 days

So Rs. 5,00,000/2200
= Rs. 230/day

Yearly insurance Rs 15000 = Rs. 41/day

Daily petrol minimum 
= Rs. 100/Day

After every 3 years Tyre & Battery change charge Rs. 25,000 i.e. = Rs. 23/day

Yearly maintenance of
Car Rs. 9000 i.e 
= Rs. 25/day

Plus interest loss on
Car buying amount
@8%on Rs. 6,00,000 = Rs 131/day                                           _______________
So after buying a new car *daily expenditure = Rs. 850/day.* 

⚖

So friends untill you pay Rs. 850 daily to hire a cab, you are effectively in gain travelling in rental car. 

OLA/UBER now available.

Above all, driving cars on the Indian roads is full of risk added with Mental tension/BP...

New hefty Traffic challans not included.