FM Nirmala Sitharaman's explanation for auto slowdown: Millennials prefer Ola, Uber

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Finance Minister Nirmala Sitharaman said that the "millennial mindset" of relying on taxi services, besides the upcoming stricter emission norms, are responsible for the auto sector slowdown.

“The automobile and components industry has been affected by BS 6 [norms] and the mindsets of millennial, who now prefer to have Ola and Uber rather than committing to buying an automobile,” Sitharaman told reporters in Chennai, according to ANI.

She added that millennials do not want to commit to taking an equated monthly instalment.

“The automobile industry in India did have its good time, at least till two years ago. There was definitely a good upward trajectory for the automobile sector.” Sitharaman said.

Auto sales have been grim for more than a year, with August sales falling 31.57 percent, the worst month in 22 years.

The sector slowdown has led to companies resorting to production cuts even as many dealers have laid off employees or shut shop themselves.

Recently, the FM announced a series of steps to revive the auto sector, including lifting the government's self-imposed ban on buying vehicles.

Further, Indian automobile companies have requested the government to to cut the goods and services tax on passenger cars, warning that a continuing slowdown could result in job losses on a large scale.