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Millennials have no money to buy cars: Citizens on Nirmala Sitharaman's Ola-Uber claim

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Millennials have no money to buy cars: Citizens on Nirmala Sitharaman's Ola-Uber claim

Finance Minister Nirmala Sitharaman's statement that the auto industry is in soup because Millenials used cab services instead of buying vehicles has the young generation divided.

Some of the Millenials India Today TV spoke to say that their decision to not buy a car has less to do with Ola or Uber and more with the current economic crunch.

Several others have said that the mobile app-based taxi services do provide a good alternative to personal cars.

What Nirmala Sitharaman said:

Addressing a press conference in New Delhi on Tuesday, Nirmala Sitharaman said that automobile industry was under stress because of "the mindsets of millennial, who now prefer to have Ola or Uber rather than committing to buying an automobile". She also upcoming BS6 emission norms for the slump.

Her statement sparked criticism from the opposition and hilarious reactions on social media.

India Today TV spoke to several people about Nirmala Sitharaman's statement and here's what they think:

Majority of the people India Today TV spoke to said that a drop in car sales was not just because of mobile app-based taxi services but due to several other economic factors.

Economic crunch:

"The market condition is very bad. Everybody is crying for money. This is a festive season but the market is not up to the mark. People can do nothing without money. Not only in automobile sector but in every sector the condition is very bad," Aziz Rehman, a car owner in Kolkata said. He added that those who are used to drive car will drive anyway but those who want to purchase a new will have to think twice. The young generation has to think before buying a car."

High GST rate:

A private-sector employee, Surjit Singh, says that the sale went down because of 28 per cent GST on the cars.

"The government should withdraw the GST on old cars. When people will sell their old car only then they can buy new cars. Due to the recession, the sale in the automobile sector has gone down. People have to think that if they are able to manage the EMI or not. There is no money in the market," Surjit Singh said.

Traffic congestion:

Several daily commuters said traffic congestions, parking issues and rising fuel prices also gave an edge to taxi services over private cars.

"I hate the idea of driving a car because of the congestion on the road, a lot of parking problem and the road condition is also not right," Karanveer Singh, another vehicle owner said. "The young generation is very much aware of the environment condition that the country, as well as the world, is facing. They don't want to contribute to that," he added.

Motor Vehicle Act:

Another driver Nitin Gupta says the enforcement of the amended Motor Vehicle Act has further swelled the demand for the Ola and Uber services.

"People are avoiding their own cars now as travelling in Ola and Uber is not only cheaper but also saves from various hurdles. There is no need to worry about the police or heavy fines," said Nitin Gupta.

The Ola, Uber edge:

Those, who agreed that Ola and Uber directly impact their decision to not buy a car, defend their choice. Several members of the young generation said that app-based taxis were an affordable, convenient and safer option.

For Alim and Raj who are B Tech students, getting a ride is not only affordable but also convenient as it is controlled by an app.

"The rides are very cheap and can be controlled with the help of an app. It can also be cancelled at the click of a button," says Alim.

For Raj, Uber and Ola type of services have made the movement of the working class in the odd hours also.

"These taxis take you to every corner even where the bus services are not available. It is also very safe," says Raj.

We also spoke to a senior citizen Archana who says the app-based taxis were better than own car driving which is cumbersome and costly. "It can also be stopped anywhere."

Ashish, who is working in an engineering firm, also prefers the app-based taxi services as it is available round the clock.

"I reached Chandigarh at 2 AM last night and no bus services were available to my locality. The normal taxi walas charge too much. I immediately booked a cab using the app and I reached my home easily," says Ashish.

For Rekha, a student, what matters the most is safety and security. "Whenever we book a ride we get driver's contacts and the rides are mapped. It is very safe and secure. So I prefer Ola and Uber," says Rekha.

"The youths and the working class prefer Ola and Uber as it is cheaper and easily available at their doorstep," says Tejwant Singh, a Chandigarh based taxi driver.