Car buyers are a lot more wary now than during the festive period, says Sundaram Finance

The commercial vehicle (CV) space is directly tied to economic sentiments and through the festival season there was a terrific movement in the CV sector. While the momentum through the festival season continues, the buyers are a lot more circumspect, said Rajiv Lochan, MD of Sundaram Finance on Wednesday amid the rising rate environment.

“Our readings from the ground indicate that while we expected the momentum through the festival season to continue, buyers are a lot more circumspect in terms of asset prices that are now reached and the buyability of the assets itself,” he said.

Crude oil prices have dropped in the last few months, so buyability for many of the operators’ remains at the same level that it was when crude was not around $100 per barrel levels. This also forces buyers to be a lot more circumspect before making some of these large investments particularly in the M&HCV segment where asset prices are now not Rs 40 lakh – Rs 50 lakh.