The automobile industry in India is facing slowdown in their sales, even as the the festive season of Dussehra and Diwali approach. In the months of April-July, the sales for automobiles have recorded a drop by more than 10 percent. The sales have not witnessed an increase in the festive season when the industry usually expects 25-30 percent of the sales. The reason behind this crisis is undoubtedly a decreased demand for a personal vehicle with an increased convenient and cost-effective public transports. Metros, Ola, Uber and other cab services account for a comfortable, safe and cost-effective travel. Fewer people today are ready to commit to buying a personal vehicle when they can afford a good cab ride.

Key Takeaways:

  • Automobile sales have reduced by more than 10 percent from April-July.
  • The high-sale of the festive season (Diwali and Dussehra) did not yield an increase in the sale.
  • Nirmala Sitharaman said, automobile sales crisis is because millennials prefer Ola, Uber over personal vehicle.
  • The GST council meeting on September 20 will discuss the demand of reducing the GST on automobiles. 

Nirmala Sitharaman on automobile crisis

While addressing the Chennai media, Nirmala Sitharaman, the finance minister of India, linked the crisis in the automobile sale to the millennials’ preference of cabs over personal vehicles besides the high tax rate on automobiles. However, she also said that the auto manufacturer’s demand to reduce GST rates for automobiles will be discussed in the GST council meeting on September 20. According to a tweet by Gargi Rawat, Sitharaman said:

But, as the reports suggest, the slowdown in the automobile industry is also affecting the employment sector of the industry. If there are decreased or no sales of the automobiles, it is inevitable that many would be left jobless. However, the fact that the decreased sales of vehicles have a direct implication, it means fewer cars on the road which is the need of the hour for sustainable environment.  How far do millennials agree with Sitharaman’s statement and the crisis in the automobile industry? SheThePeople.TV asked millennials regarding the same who frequently use Ola, Uber and metros for travel. The conversation yielded the following:

Charvi Kathuria

Content writer at SheThePeople upheld Sitharaman’s tweet and asserted that:

“We don’t have a car and we are not planning to buy one either. Cabs are easily available these days and make the commute safer and convenient. Buying cars and then maintaining them adds to the living costs unnecessarily.”

“In today’s overpopulated world it is difficult to use own vehicle on such congested roads. Moreover using public transportation like Uber and Ola provide comfort like your own car without having the tension of parking, maintenance or driving in the hectic cities.”

Kirti Mittal

A 20-years-old BA LLB second-year student at Symbiosis Law School and a frequent user of metro and cabs in Delhi said:

“In today’s overpopulated world it is difficult to use own vehicle on such congested roads. Moreover using public transportation like Uber and Ola provide comfort like your own car without having the tension of parking, maintenance or driving in the hectic cities. It is a convenient and safer option for women to use the metro. Even the concept of saving non- renewable energy has emerged in young minds by using public transportation. These all reasons affect the mind-sets of the millennials in today’s era.”

Mansi Singhal

A 20-years-old Audit Associate at E & Y Company in Gurugram totally sided with the millennials’ preference for public transport, especially metro. She said:

“In a bid to avoid immoderate traffic which is quite a sight in Delhi, Metro remains my first choice, undoubtedly. Cabs are better when comfort is expected, thus totally making the personal vehicle an evitable option.”

“By choosing metro for travelling one can escape traffic and now even heavy fines. Many people choosing a public vehicle leads to less vehicle on the road, causing less traffic and pollution.”

Sushma Buswal

A 20-years-old MA English student at the University of Delhi also agreed with Nirmala Sitharaman’s tweet and said:

“By choosing metro for travelling one can escape traffic and now even heavy fines. Many people choosing a public vehicle leads to less vehicle on the road, causing less traffic and pollution. Even people who don’t possess proper car documents find it easy to escape new rules by choosing Ola or Uber rather than getting all the documents verified.”

Augustina Tangu

A 20-years-old BA Honors Japanese student at Jawahar Lal Nehru University and a frequent cab user said:

“Cabs are cheaper for now and convenient. We don’t have to care about insurance, license, petrol and the maintenance of the vehicle.”

Hemant Chandiramani

Hemant Chandiramani from SheThePeople also agreed and said:

“I feel Ola & Uber work out very convenient. Both of my cars are only used for Outstation travelling. In metros, both the traffic & parking are a disincentive to driving. So why would I spend EMI on a new car, I prefer being an Uber loyalist.”

“Cabs are better because you save a lot of money by not buying a car. It saves money from parking cost, insurance cost, servicing cost, from hefty challans and driver cost.”

Rahul Sunny

A 23-years-old B.Ed student at Department of Education, Delhi University, who owns his personal vehicle and still believes in the greater efficiency of cabs and public transports. He says:

“Cabs are better because you save a lot of money by not buying a car. It saves money from parking cost, insurance cost, servicing cost, from hefty challans and driver cost.”

Adeem Tangu

A 19-years-old student preparing for Medical entrances at Aakash Institute, Delhi, who usually prefers cab over any other public or personal vehicle explains:

“I personally think taking a cab to go somewhere especially in a city like Delhi where people fight for even an inch of space to park their cars, it’s way easier to just have a cab pick you up and drop you off without having to worry about whether you would get a parking spot or not. And since climate change is a big issue these days, not buying a car is a very big contribution in making the process slow down as its one car less on the road. Trying to leave as fewer carbon footprints as possible.”

Picture Credit: DNA

Rudrani Kumari is an intern with SheThePeople.Tv.

Also Read: Nirmala Sitharaman Outlines Economy Plan, Says Won’t Harass Industrialists

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