On Monday, data showed that India’s passenger vehicle industry recorded its worst sales performance in more than two decades in August. On Tuesday, finance minister Nirmala Sitharaman came up with an explanation: a “change in people’s mindset”.
According to BloombergQuint, the minister told reporters in Chennai that “some studies show that millennials do not want to commit to an equated monthly instalment to buy a vehicle, and prefer Ola, Uber and metro services”.
Pressure has been mounting on the government as the economic slowdown worsens, and the auto industry, in particular, has been demanding a stimulus package and GST rate cut ahead of the festive season. The industry is one of the biggest employers in the country, and the crash in auto sales point to a bigger problem: a slump in consumer demand.