Business & Finance

“Ola, Uber not a strong factor for slowdown”: Maruti Suzuki official

Nirmala Sitharaman

Guwahati | According to a top official of Maruti Suzuki India, Millennials opting for ride-hailing services like Ola and Uber may not be that strong a factor for the current slowdown.

Ownership pattern in India still has not changed and people purchase cars with an “aspirational aspect”, MSI Executive Director (Marketing and Sales) Shashank Srivastava told PTI in an interview.

“The Ola and Uber factor may not be strong to contribute to the current state of slowdown. I think we need to watch and study it more before arriving at such a conclusion,” Srivastava said.

He further said, “Ola and Uber came into existence during last 6-7 years. In this period, the auto industry also saw some of its best times. So, what happened only during last few months that the downturn became so severe? I do not think it is only because of Ola and Uber,” Srivastava said.

On Tuesday, Finance Minister Nirmala Sitharaman had said a change in the mindset of millennials, who now prefer taxi aggregators like Ola and Uber instead of committing for monthly instalments to own a car, was among one of the many factors responsible for the slowdown in the automobile sector.

He said people’s behavioural pattern is still the same, they might purchase a vehicle for weekend outings with family.

“India, 46 per cent of the car buyers are first time users. It is an aspirational behaviour. People may use public transport like Ola and Uber to go to offices on weekdays, but still they buy a vehicle for the weekend outings with the family,” Srivastava explained.

“The pattern of ownership in India has not changed yet. We have to watch on a longer period to see if there is a structural change in buying pattern,” he added.

He pointed out that the recent measures taken by the government to boost sales and economy are not sufficient.

According to the Society of Indian Automobile Manufacturers (SIAM), domestic vehicle sales in August declined by 23.55 per cent to 18,21,490 units from 23,82,436 units in the same month last year. From April to August period, the sales have fallen by 15.89 per cent to 97,32,040 units from 1,15,70,401 units in the year-ago period, SIAM had said.

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CPI(M) demands protection for Kashmiris living across India

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Jammu | The CPI(M) demanded on Friday that the central and state governments take all steps to protect Kashmiris living outside Jammu and Kashmir, following reports of them being targeted in the aftermath of the Pulwama terror attack.

The Jammu and Kashmir governor should convene a meeting of political leaders and prominent citizens to discuss the present situation, CPI(M) leader Mohamad Yousuf Tarigami told reporters here.

“We demand that the central and state governments take all steps to protect Kashmiri Muslim residents,” he said.

He said that in the aftermath of the February 14 Pulwama terror attack, jingoistic communal atmosphere is being created in the country, while in certain places, protests were deliberately turned against Kashmiri students, businessmen, employees and others.

“This tragic and horrible act of terror should not be used for narrow partisan interests and should not lead to polarise the already charged situation,” he added.

The Supreme Court Friday directed the Chief Secretaries and DGPs of 11 states to take “prompt” action to prevent incidents of “threat, assault and social boycott” of Kashmiris, including students, in the wake of the Pulwama terror attack.

Forty CRPF personnel were killed and five injured on February 14 in one of the deadliest terror strikes in Jammu and Kashmir when a suicide bomber blew up an explosive-laden vehicle near their bus in Pulwama district in Jammu and Kashmir.

The bus was part of a convoy of 78 vehicles carrying Central Reserve Police Force (CRPF) personnel from Jammu to Srinagar.

The Jaish-e-Mohammad claimed responsibility for the attack.

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