Finance Minister: Ola, Uber also responsible for Recession in auto sector
10th September 2019
New Delhi: The automobile sector is facing recession. Many companies have stopped production for a few days and the jobs of people associated with this sector are also in danger. In such a situation, Finance Minister Nirmala Sitharaman blamed the change in people’s mindset and the BS-6 model for the decline of the auto sector. The Finance Minister said that many factors are responsible for the condition of the automobile sector, including the BS-6 movement, matters related to registration fees and people’s mindsets. Sitharaman said that nowadays people prefer to travel in the metro or use Ola-Uber more than buying the car and filling the EMI. He admitted that the decline in this sector is a serious problem and should be resolved. The finance minister was talking to journalists on the completion of 100 days of the second term of the Modi government. The Finance Minister said, ‘We are serious about the problems of all the septors and necessary steps will be taken. This government listens to everyone. Two big announcements were made in August and September, more announcements can be made according to the need. Maruti’s chairman gave this reason Maruti chairman RC Bhargava denied that the sale of cars has been affected due to Ola, Uber. He also blamed government policies for this. Bhargava said that due to the high tax rate of petrol and diesel and the road tax, people are also shying away from buying cars. However, he said that it will not make any difference with the deduction of GST. At the same time, the industry is demanding a GST cut to deal with this slowness. Maruti’s chairman said adding safety features such as airbags and ABS to the cars drove up prices and made the car far out of the reach of two-wheelers. Bhargava had said that Ola, Uber are not responsible for it but strict safety and emission rules, high cost of insurance and additional road tax are affecting it. The finance minister also attributed Ola, Uber to the auto sector slowdown. Sitharaman has also cited the reason for the high cost of registry fees, which also matches RC Bhargava. Let us tell you that for the 10th consecutive month in August, car sales have come down. Sales of large vehicles are decreasing in almost all companies.