Finance Minister Nirmala Sitharaman on Tuesday stated that the slowdown in the auto industry is not because of higher taxation, but due to various other factors including the change in the mindsets of millennials who prefer to use cab aggregators and radio taxi services instead of buying vehicles.
"The automobile industry in India did have its good time, at least till two years ago. There was definitely a good upward trajectory for the automobile sector. But now it has been affected by the transition to Bharat Stage VI emission norms and a higher registration fee. Some studies show that millennials do not want to commit to an equated monthly installment to buy a vehicle, and prefer Ola, Uber and metro services,” Sitharaman told reporters in Chennai, while speaking about the 'bold decisions of the 100 days of Modi 2.0 government'.
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She refused to comment on questions regarding GST rate cut demand by auto sector and the GST council meeting on September 20.
The finance minister said, "The government departments have been allowed to buy new vehicles. Automobiles purchased till March 31 next year can avail the benefit of additional depreciation of 15 per cent with total depreciation up to 30 per cent."
She further said the Modi government has taken landmark steps in its second term for India to emerge as a dollar five trillion economy in the next five years.
Hours after she blamed the millenials, the Twiterrati trolled the finance minister asking why the truck sales are down.