Shashank Srivastava, executive director (marketing and sales), Maruti Suzuki India, said on Wednesday that services like Ola and Uber cannot be said to be solid reasons for the slowdown in the auto industry. They need a detailed study to arrive at the conclusion. Srivastava said that Ola and Uber have been there for the last 6-7 years. During this time the auto industry also saw a good phase. Why did the decline in vehicle sales speed up in the last few months? Only Ola-Uber cannot be considered as a reason.
46% of customers in the country buy cars for the first time: Srivastava
Srivastava gave an example that Uber is a major service provider in the US. There has been a tremendous boom in car sales in the last few years. 46% of the customers in the Indian car market are those who buy a car for the first time. On weekdays, people can opt for Ola-Uber to go to the office, but it requires a private vehicle to go out with a family on weekends.
According to Srivastava, the honors pattern in the country has still not changed. People buy cars from the perspective of ambition. There are many reasons for the slowdown in the auto market. These include reasons like shortage of cash, rising prices because of regulatory issues, higher taxes, and costly insurance. The announcements the government made last month are not enough to deal with the current recession. However, they will be helpful in the long term.
According to the Society of Indian Automobile Manufacturers (SIAM), vehicle sales declined by 23.55% in August. There was a 15.89% decline from April to August. Finance Minister Nirmala Sitharaman said on Tuesday that the youngsters are preferring to use services like Ola and Uber instead of filling the EMI of the new car. This is also one reason for the decrease in vehicle sales.