The government last month announced the merger of 10 public sector banks (PSBs) into four strong lenders with countrywide networks and global reach to boost credit and revive economic growth in the nation’s bid to become a five trillion dollar economy in the next five years.
On Tuesday, Sitharaman, at a press conference, had said: "The automobile and components industry has been affected by BS6 and the mindsets of millennial, who now prefer to have Ola and Uber rather than committing to buying an automobile."
Finance Minister Nirmala Sitharaman had said that the ongoing slump in the automobile sector can be traced to a factor that millennials do not want to commit themselves to EMIs.
Vehicle sales across categories registered a decline of 18.71 per cent to 18,25,148 units from 22,45,223 units in July 2018, it added. In fact, all vehicle categories witnessed a decline in sales during the month.
The slowdown in auto sales also stems from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.