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Millenial choice of Ola, Uber leading to crisis in Auto Industry: Nirmala Sitharaman

New Delhi 12.09.2019. Finance Minister Nirmala Sitharaman today spoke about the reasons for slowdown in the auto sector. Sitharaman blamed Ola, Uber for the fall in vehicle sales. The Finance Minister has said that BS6 vehicles are having an impact on the auto industry. She also said that due to the increasing use of BS-6 technology and Ola-Uber, people are not buying new vehicles. “This is a major reason for slumping sales in the auto industry,” she said.

According to news agency ANI, Sitharaman said that the auto industry has suffered due to BS6 and Millennials Mindset. “Millenials are using Ola-Uber instead of buying new vehicles,” she said. According to SIAM, an organization of vehicle manufacturing companies, sales of the auto sector fell by 41.09 per cent in August. On the occasion of the decisions and their impact in the 100 days of the Narendra Modi government, the finance minister discussed the reason for the decline in the auto sector.

Last year, the Supreme Court ruled that from April 1, 2020, there will be no sale of (BS) IV vehicles. Along with this, Nirmala Sitharaman also promised that the auto sector can get more relief in the coming days. She said that work is going on on the suggestions received from the industry for auto components. The auto industry has raised the demand for a reduction in GST rates. But the GST Council is yet to decide on the rates.

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