Daijiworld Media Network - New Delhi (SHP)
New Delhi, Sep 11: Finance Minister Nirmala Sitharaman has now blamed the millennials as one of the reasons for the slump in the automobile sector. Sitharaman has claimed that the domestic sales fell from the effects of BS6 emission norms and millennial preference for Ola and Uber over the purchase of a vehicle.
The automobile sector fell at a record of 23.55 per cent in August 2019. Meanwhile, the domestic sale of passenger vehicles continues to drop down for the 10th month in a row.
To boost up the sector, the government released several measures. The BSIV vehicle purchased till March 31, 2020, will operate for the entire period of registration. Ban on the purchase of new vehicles by different government department was also removed. Besides this, the one-time registration fee was until June 2020.
The Finance Ministry will consider relaxing the 28 per cent GST to promote purchase. One of the several other measures includes, Vehicles that are purchased till March 31, 2020, will have 30 per cent depreciation.
The automobile sector meltdown was suffered by India's largest carmaker, Maruti Suzuki. The sale dropped 36.1 per cent to 93,173 units in August 2019 from 1,45,895 in August 2018.
The backlash of the failing auto sector was also faced by some of the other famous carmakers - Honda plunged to 51.3 per cent, Hyundai dropped to 16.58 per cent, and Tata Motors saw a decline of a massive 58 per cent.