Thread by @thekaipullai

Blaming Ola and Uber for the auto decline is like saying hot weather is responsible for India's lack of sporting prowess.

You say it because you don't have the intention to dig deeper.

What if I said Ola and Uber themselves are struggling for growth?

ecoti.in/OUCIHa

Banks stopped disbursing loans for cabs to be operated on Ola and Uber. Transport companies literally used to sell seized cars for a song, because most defaulted on loans.

Hardly a sign of a prosperous industry

m.hindustantimes.com/bengaluru/beng…

The number of daily rides on Ola grew by 4%. That's less than our GDP.

Also, if all of us are moving towards Ola and Uber, yellow board registrations should have gone up
Right?

No

thehindu.com/news/cities/ba…

If you actually pierce thru all the gas, and if the govt and Auto industry is honest with themselves.

The auto decline can be condensed to two things

1. Irrational Taxation
2. Absolute lack of value in the market.

You can't tax a buyer 43%, including a sin tax for buying a car

And even after you pay thru your nose as taxes, what do you get.

For 17 Lakhs, you get a VW Vento, that was launched in 2007.

For 10 Lakhs, you literally get a tin can on wheels, that masquerades as the Swift.

Not surprising, given their attitude m.timesofindia.com/business/india…

They think they are doing us a favour by giving us safe cars.

Dear people,

The problem is not that millenials are taking Ola/Uber

The issue is Millenials are looking for Value. And millenials know their stuff.

They know the their ABS and Disc Brakes. They know about Gearbox

And unfortunately for them, they can't find Value in today's market.

This isn't A market where Suzuki can launch a shit Contraption called S Presso and get away with it.

Govt has to rationalize taxes.

And car makers have to evolve to a more educated buyer.