HYDERABAD: All allegations aside, do the millennials even constitute a good chunk of the automobile industry’s customers? According to experts from the city, only a niche groups of millennials from the IT industry, who actually have the purchasing power, are gravitating towards the idea of buying cars.
The IT industry, they note, is the only sector that offers the kind of job security or perks required for a luxury like buying cars. For instance, certain select MNCs in the city offer a ‘company lease option’, wherein the employees get heavy tax rebates on cars purchased. In fact, some firms on a whole offer the 25-to-35-year-olds working there much better packages, enabling them to afford cars when compared to their peers.
“A car is a huge investment. In fact, apart from capital investment, it has insurance payments to top it off along with its maintenance needs. Very few millennials can afford this. Unless they get a package of Rs 1 lakh per month, why would they buy a car,” asks Santhosh Reddy, executive member of Telangana and AP Automobile Dealers Association?
Researcher Srinivas Kodali states that the millennials who run this ‘gig economy’ by driving cabs or delivering food, actually do not want to be part of it. They first want to have job security. “How can we expect them to buy anything? Companies are shutting down, their pay is stagnated and job security cover is absent. Unless the millennial workforce gets insurance and job security, how does the question of buying cars even arise,” he questions.
“While the chatter is around Ola and Uber users, the minister must note that a lot of millennials work for these firms. They are stuck in this vicious trap, where they are paid based on their performance. The minister must think about why they are unable to progress in this system,” says Shaik Salauddin, chairman, Telangana State Taxi and Drivers JAC.