This Economist Calls Millennial Consumption Patterns Destroying the Automotive Industry, How Can?

JAKARTA, KOMPAS.com – Economist Indef Bhima Yudistira Adhinegara assessed the consumption pattern of generations millennial can cause a decrease in production demand for a good industry. One of them is industry automotive.

Bhima explained, automotive industry before the pandemic, it has indeed decreased due to the millennial consumption mindset.

“Now the millennial trend is more concerned with health. This millennial image is devastating automotive industry in Indonesia. What is even more declining in sales is private vehicles. Not because of a pandemic, but because millennials are lazy to buy a car, “he said online, Wednesday (4/11/2020).

Also read: 3 Reasons for Millennial Generation It is Difficult to Save

According to Bhima, the millennial generation prefers something practical, because of the availability of online transportation. Then, think economically because without having a car, parking fees and vehicle repairs are free.

“Why don’t millennials own a car? This is very interesting. The automotive industry is not good because it is beaten by millennial consumption patterns which are very different from their parents’ generation. So, why own a car, if there is online transportation,” he said.

“If there is a car, there will be costs to the garage, parking fees. Then, there are changes, millennials prefer to spend money or rent rather than buy a house,” he said.

Previously, the Director General of Metal, Machinery, Transportation Equipment and Electronics at the Ministry of Industry, Taufiek Bawazier, said that the automotive industry provided foreign exchange from exports of Rp 24.3 trillion. Meanwhile, the import value reached Rp. 10.1 trillion, so there is still a surplus.

“If we look at our industry, actually our CBU (Completely Built Up) also has a surplus in our exports. So we export a lot too. In the automotive industry, we can achieve exports of around Rp 24.3 trillion and imports of around Rp 10. , 1 trillion. So this is also a sign that we are still a surplus in CBU, “he said.

Also read: Millennials can also buy their own houses, follow these 4 ways!

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