Millennials mean more demand for cars: JLR

ACCORDING TO AUTOMAJOR CHIEF, GENERATION IS DRIVING DEMAND UP VIA RIDE-HAILING SERVICES

Millennials depending more on ride-hailing service providers for commuting would mean more demand for cars rather than affecting sales in mega cities, including those in India, according to JLR chief executive Ralf Speth.

Amid automobile sales slowdown in India, Finance Minister Nirmala Sitharaman had recently said one of the reasons for the downturn in the industry was millenials using more of ride-hailing services Ola and Uber instead of buying new cars.

"We should not always see it in black and white. I look at a little differently. If you look at experiences of mega cities, like London, this kind of trend will create demand for more cars," Speth said.

He was responding to a query on how the so-called trend of millennials not buying new vehicles and instead going for ride hailing services is affecting the auto industry.

For younger people, Speth said, "Living in these mega cities, parking is expensive, transport services are not adequate. Then you recognise public transport is not capable to deliver the mobility people need. If I see the trends in India, it is quite similar in mega cities."

He further said women hesitate to travel in underground in tubes in London, because of the crowd, youngsters don't want to take the tube.

"It is better for them to call an Uber or any other such service. It is quite cheap especially with the pool options emerging. You don't have to travel individually, you can even travel with other people. There will be even more vehicles on the street. This kind of mobility is easier, more comfortable, safer and there will be more cars on the road," Speth asserted.