coronavirus update indiaas on : 25 May 2020 04:06 GMT+5:30
Blame Game Starts As India's Auto Sector Is In The Slow Lane
India is the world's fourth-largest car market. But the country's once-booming auto sector - seen as an important barometer of overall economic health - is in the slow lane
New Delhi: Amid the Finance Minister Nirmala Sitharaman claimed that a preference by millennials for ride-hailing apps was contributing to a slowdown in car sales, it sparked an online criticrism from furious youngsters.
They started a campaign using hashtag #BoycottMillennials last week to push back against older generations blaming them for today's problems.
While data shows firms such as Uber and Ola are popular with younger consumers more comfortable with shared mobility and digital trends, as per findings the problems run deeper than that - and it is facing more serious bumps in the road.
India is the world's fourth-largest car market. But the country's once-booming auto sector has now seen as an important barometer of overall economic health - is in the slow lane, with sales slumping for the 10th-straight month in August.
Uber and Ola reportedly facilitate some 3.65 million daily rides.
Still, Avanteum Advisors managing partner VG Ramakrishnan told AFP the key reason for the drop in car purchases was economic.
"I think the slowdown is primarily because consumer confidence is low and income growth has really been impacted in the last couple of years," he told AFP.
India's economic growth slowed for the fifth-straight quarter in April-June to reach its weakest pace in five years.
Banks are also more reluctant to lend owing to a liquidity crunch caused by the near-collapse a year ago of IL&FS, one of India's biggest shadow banks - finance houses responsible for significant consumer lending.
For Business News Click Here