Union Transport Minister Nitin Gadkari vouched for the much-headlined statement of Finance Minister Nirmala Sitharaman, which asserted that the mindsets of millennials are adversely affecting the automobile industry as they prefer to use radio taxi services instead of buying their own vehicle. Speaking to ANI, Gadkari backed Sitharaman saying -
"That is also one of the reasons. Somewhere because of the global economy, business cycle and demand and supply there is a problem. Somewhere the manufacturing was more than the expectation. Now it is a problem"
Union Finance Minister Nirmala Sitharaman on Tuesday kicked up an uproar stating that the automobile industry is being evidently affected by BS6 (Bharat Stage) and the mindsets of millennials as they prefer Ola or Uber rather than buying their own vehicle.
Sitharaman in a Press Conference had claimed that -
"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."
The automobile sector has witnessed fluctuation in sales in the recent quarter as 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% decline.
However, Nitin Gadkari, who is known for his business acumen skills, said that the government is charting out a way to help the automobile industry with the assistance of the Finance Ministry.
"The government is with the industry because it is an employment provider. It also contributes to the growth rate. So, we are very sensitive about it. Finance Ministry and my ministry are seriously considering a lot of things for them. I am confident that there will be reform in the sector. I am expecting that India will become the manufacturing hub of the automobile," he said.
Speaking about the afflicted situation in the industry, Nitin Gadkari said that the reasons could be ascertained due to the demand and supply issues, global economic slowdown, or due to the business cycle.
The Finance Minister has assured that the Ministry will take measures in favour of the automobile industry as it is facing the worst decline recently which is the lowest in two decades. She guaranteed the buyers and the manufacturers in the automobiles industry that vehicles compliant with Bharat Stage IV emission norms registered before March 31, 2020, will be able to run for the entire registration period of the vehicle. She further spoke about Prime Minister Modi's vision to achieve the five trillion-dollar economy goal in the next five years amid an economic slowdown.
(With Inputs from ANI)