24.9 C
New Delhi
Wednesday 23 October 2019
Economy Business Maruti-Suzuki takes exception to remark by Sitharaman

Maruti-Suzuki takes exception to remark by Sitharaman

Nirmala Sitharaman had recently blamed taxi aggregator companies like Ola and Uber for sluggishness in the auto sector, but the country's largest car-maker Maruti Suzuki India has taken exception to the comment

-

- Advertisment -

Guwahati: Union Finance Minister Nirmala Sitharaman had recently blamed taxi aggregator companies like Ola and Uber for sluggishness in the auto sector, but the country’s largest car-maker Maruti Suzuki India has taken exception to the comment. The company said that these cab companies had been around for the past six or seven years, but the slowdown had reached a critical condition in the last few months.

“Ola and Uber came into existence during the last six-seven years. In this period, the auto industry also saw some of its best times. So, what happened only during the last few months that the downturn became so severe? I do not think it is only because of Ola and Uber,” Shashank Srivastava, executive director (marketing and sales), Maruti Suzuki India, said. He added that there was no change in every Indian’s desire to own a car. He said people bought cars for various reasons not limited to mobility.

Srivastava cited the US market which has seen a robust auto sector in spite of Uber which is a big player there. “In India, 46% of 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,” the Maruti-Suzuki executive director said.

Sitharaman had said on Tuesday that the new generation now preferred to take taxis instead of paying EMI. According to her, this trend was the reason for the slowdown in the auto sector.

The auto industry is going through a tough time. The monthly passenger vehicle and car sales record saw the steepest fall in August. Passenger vehicle sales plunged 31.57% year-on-year to 196,524 units in August while passenger car sales fell 41.09% to 115,957 units. This is the worst-ever fall for both the categories since the Society of Indian Automobile Manufacturers (SIAM) started recording the data in 1997-98.

August was the tenth straight month that witnessed a fall in car sales. Truck and bus sales dropped 39% while two-wheeler sales fell 22% to 1.5 million units, neither of which can be attributed to the increasing popularity of taxi aggregator services.

According to the Society of Indian Automobile Manufacturers (SIAM), domestic sales of vehicles declined by 23.55% to 18,21,490 units in August. The figure stood at 23,82,436 units in August last year.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

1 COMMENT

Leave a Reply

Opinion

Aaditya Thackeray, Shiv Sena’s Existential Gambit

With leaders deserting Shiv Sena or debilitated with age, the party's footprint shrinking and Uddhav lacking Balasaheb's charisma, Aaditya had to step in to maintain the dynasty that has mostly been betrayed when politicians not from the Thackeray family were trusted

Karva Chauth: Faith, legend behind viewing the moon through a sieve

The legend and Karva Chauth rituals vary across Rajasthan, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Haryana, Punjab, Delhi and, in south India, Andhra Pradesh

Pakistan-Occupied Kashmir, Here We Come!

Study Wuhan and Mamallapuram in the backdrop of the fact that things are not quite working out in China-Pakistan economic relations, notwithstanding the urge of the communist state to contain India and that of the Islamic state to challenge it

Slowdown Has Reasons Other Than GST, Demonetisation

When all economic sectors decline, the mood of the market turns sombre, turning investors all the more reluctant to pump in money; the interdependence of industries means that the slowdown suffered by one would affect many

Where China & India, Resisting & Improving Democracy, Meet

What you see in Hong Kong is China resisting democracy; what you see in Kashmir is India promoting it; a reasonably capitalist China does not offer freedom politically but India, held back at times by the choice of the people, is still opening up; there could be a point of convergence as the two nations move in opposite directions
- Advertisement -

Elsewhere

Kartarpur Corridor: Govt yields under Sikh pilgrim pressure

However, India would ask for amendment of the Kartarpur Corridor agreement with Pakistan at any time as per the situation, said the MEA

Kamlesh Tiwari murder: Rashid, Faizan, Mohsin tough nuts to crack

While police suspect Rashid Ahmad Khurshid Ahmad Pathan to be the main conspirator, he managed to delete all photos and videos from his mobile phone before it was seized; now he claims he has nothing to do with the conspiracy to kill the former Hindu Mahasabha leader

Abhijit Banerjee emerges from meeting with PM satisfied

One could derive that sense from the way the joint winner of this year's Nobel Prize for economics narrated how Prime Minister Narendra Modi explained to him his governance model

Love jihad did not spare even a BJP leader’s daughter?

While former BJP MLA Surendra Nath Singh accuses Congress MLA Arif Masood of engineering 'love jihad', the latter, as well as 26-year-old Bharti, denies the charge

Muslim moulding-of-relief affidavit leaked before reaching SC

Just a query from the CJI and no further action against the petitioners is yet another instance after Rajeev Dhavan's act of tearing a map submitted by one of the Hindu parties where the Supreme Court was seen treating the Muslim side with kid-gloves

You might also likeRELATED
Recommended to you

%d bloggers like this: