Millennials on ride-share to spur demand for cars: JLR

Amid automobile sales slowdown, Finance Minister Nirmala Sitharaman had cited millennials using more of ride-hailing services Ola and Uber instead of buying new cars, as a reason for the slump.

“We should not always see it in black and white. I look at a little differently. If you look at experiences of mega cities, like London, this kind of trend will create demand for more cars,” Speth said. For younger people, “Living in these mega cities, parking is expensive, transport services are not adequate. Then you recognise public transport is not capable to deliver the mobility people need. If I see the trends in India, it is quite similar in mega cities.”

He said women hesitate to travel in underground in tubes in London, as the crowd, youngsters don’t want to take the tube. “It is better for them to call an Uber or any other such service. It is quite cheap especially with the pool options emerging. You don’t have to travel individually; you can even travel with other people. There will be even more vehicles on the street. This kind of mobility is easier, more comfortable, safer and there will be more cars on the road,” Speth asserted.

On the future of internal combustion (IC) engines in the wake of EVs gaining traction, he said, “We need IC engine vehicles in the future as well for a long period.” The industry must not only think about passenger vehicles but also about commercial vehicles and the role IC vehicles will play. “The need to deliver high quantity materials over long distances...the battery powered EV is not the right solution. And whether it’s us or our peers you need IC engine vehicles.”

That is why, he said JLR is investing in both and “we have just set up assembly for latest 6 cylinder engines. We have to do simultaneously the renewal and refinement of IC engines and also define a new world and invest in new world of electrification.”