Union Finance Minister Nirmala Sitharaman expressed her views on the ongoing slowdown in the automobile sector in Chennai on Tuesday. Her comments led to the circulation of trending stories like that of #BoycottMillennials and others on twitter.
Finance Minister Nirmala Sitharaman: Automobile industry is now affected by BS6 and the mindsets of millennial, who now prefer to have Ola or Uber rather than committing to buying an automobile pic.twitter.com/6KEecyopH3
— ANI (@ANI) September 10, 2019
While talking on the issue of the slowdown in the auto sector, the minister said that the demand for automobiles is going down due to the changing mindset of millennials. Talking to the reporters in Chennai, the leader said, “The automobile and components industry has been affected by BS-VI (Bharat Stage VI) norms and the mindsets of millennial, who now prefer to have Ola and Uber rather than committing to buying an automobile.” (ANI)
Her comment has speculated a nation-wide debate on twitter on the issue of the mindsets of Millenials. As per the official estimates, Auto sales have been in bad condition for more than a year. August sales have fallen down by 31.57 percent, the worst in 22 years. A major reason for the falling demand can be attributed to the mandatory adoption of BS-VI regulations from April 1, 2020. This has also increased the fear among the existing users of BS-IV vehicle owners.
Previously, Uday Kotak (Chairman & Managing director of Kotak Mahindra Bank) has also warned the automobile industry to be aware of the ongoing major structural changes in the automobile sector. He was speaking at Society of Indian Automobile Manufacturers (SIAM) convention 2019.
Rising fuel prices and additional mandatory features in the car have also increased the prices of four-wheelers. This has further slashed down the rate of growth in the sector. Data from Indian Oil Corporation shows that fuel prices have witnessed a steady increase. It has risen by 15 percent from August 2015 to August 2019.