HYDERABAD: Much to the surprise and indignance of many, Finance Minister Nirmala Sitharaman had recently attributed the slowdown in the automobile industry to a change in the mindset of millennials. According to her, the youth now preferred Ola, Uber and other rental taxi services to buy their own cars, and this was one of the primary reasons for a slump in the automobile sector. The millennials in Hyderabad, while refusing to take the blame for the crisis and calling it an absurd correlation, admitted that they indeed did lean towards taxi and cab aggregator services instead of buying cars.
However, a whole range of factors come into play — the most common being that 25-to-35-year-olds don’t prioritise owning a personal vehicle, as they are instead looking for affordable housing. “Cars are much cheaper these days, and there are attractive loan offers too. But personally, I will prefer to buy a house first. That is a stable investment as opposed to a car, which will depreciate. Moreover, for everyday transport, a bike is a cheaper and better option,” said Sai Teja, an IT employee.
Similarly, others stated that they chose to rely on public transport, despite their families insisting that they buy a car. “I use public transport because cars just add to pollution. Even if I can afford it, I will still wait for an e-vehicle ecosystem to come into place. I do not want to add to the pollution levels with a petrol car,” said Aishwarya Reddy, another software professional.
The rising costs for maintaining a car was another concern. “By buying a car, I am investing my savings on something that I will not get proper returns on. In investment, there should at least be an interest-earning of 8-10%. Since I am single and live alone in the city, I will rather prefer a bike or opt for rental services, because that is more flexible. Once I decide to start a family, a car may be an option,” said Abhishek Upadhyay, from Gachibowli.
Meanwhile, experts note that the millennials preferred taxis also because it helped cater to the need of cheap rentable luxurious transport, instead of pushing them into a financial burden. “Cars are still considered a luxurious burden on personal finances. A majority opt for cabs even if there is a surge pricing because the surge does not happen eight out of 10 times,” stated P Santhosh Reddy, executive member of Telangana and Andhra Pradesh Automobile Dealers Association.
However, a few millennials note that they would not mind shelling out a few more bucks for the luxury. “Based on rough estimates, buying a car appears to be more expensive than cabs, as they offer a daily ride in less than Rs 500. You do not even have to drive. The taxi comes with a chauffeur. However, the luxury of owning a car has its own pleasures, which millennials must not be questioned for. With car prices lowering due to the economic slowdown, I will soon be replacing my old car and getting a new one,” said Lohit Kishore, an ITES employee.
Cars still a luxury, add to pollution levels
Experts note that millennials preferred taxis because it helped cater to the need of cheap rentable luxurious transport, instead of pushing them into a financial burden. “Cars are still considered a luxurious burden on personal finances. A majority opt for cabs, even if there is a surge pricing,” stated P Santhosh Reddy, executive member of Telangana and Andhra Pradesh Automobile Dealers Association. Meanwhile, others stated that they chose to rely on public transport because cars just added to the pollution levels
Escaping the gig economy
According to interdisciplinary researcher Srinivas Kodali, the millennials who run this ‘gig economy’ by driving cabs or delivering food, actually do not want to be part of it. They would prefer job security, but are stuck in this vicious trap, where they are paid based on their performance
Rising costs for maintaining cars
“By buying a car, I am investing my savings on something that I will not get proper returns on. There should at least be an interest-earning of 8-10%,” claims a millennial