Ola, Uber not behind slowdown: MSIL official

Guwahati, Sept. 11: Millennials opting for ride hailing services like Ola and Uber may not be that strong a factor for the current slowdown in auto sales and a detailed study is needed to arrive at any conclusion in the contrary, a top Maruti Suzuki India Ltd (MSIL) official said.

Ownership pattern in India still has not changed and people purchase cars with an “aspirational aspect”, MSIL Executive Director (Marketing and Sales) Shashank Srivastava told PTI.

On Tuesday, Finance Minister Nirmala Sitharaman had said change in mindset of millennials, who now prefer Ola and Uber instead of committing for monthly installments to own a car, was one factor responsible for the slowdown in the automobile sector.

“The Ola and Uber factor may not be strong to contribute to the current state of slowdown. I think, we need to watch and study it more before arriving at such a conclusion,” he said.

“Ola and Uber came into existence during last six-seven years. In this period, the auto industry also saw some of its best times. So, what happened only during last few months that the downturn became so severe? I don’t think it is only because of Ola and Uber," Srivastava said.

He gave the example of the US market, where Uber is a big player and the car sales in the last few years are robust.

"India, 46 per cent of the car buyers are first time users. It is an aspirational behaviour,” he said. —PTI