Maruti Suzuki the Indian carmaker has said that use of Cab aggregators app like Ola and Uber by Millennials is not the strong reason behind the drop in the sales of the car. Moreover Uber and Ola have been from around 6-7 years but the fall in sales has been within the last 6 months.
The slowdown has affected the carmaker to the level that it laid off its 3k employee to compensate for the losses suffered.
Marketing and Sales, Executive director Maruti Suzuki India Shashank Srivastava told PTI that the ownership pattern in the country had not changed, and people purchase cars with an “aspirational aspect”.
Noticeably Finance Minister Nirmala Sitharaman said on Tuesday that,
“The automobile and components industry has been affected by BS-VI and the mindsets of millennial, who now prefer to have Ola and Uber rather than committing to buying an automobile.”
The executive director also that we need need to watch and study more before arriving at the conclusion that Ola and Uber are the reason behind the downfall in the industry.
He blamed liquidity crunch, increased prices of products due to regulatory issues, higher taxes and rise in insurance rates for the current situation. Also criticizing the Goverment he said that the steps taken by the government will not help the industry in the long term.