Customers become tight-fisted

A large majority of customers are extra cautious of spending money and are likely to spend less on nonessentials, including automobiles, entertainment, apparels and luxury goods, finds a survey. Another survey finds that demand for entry level and used cars has not dried up.

A nation-wide survey by fintech startup IndiaLends finds that 94 per cent of respondents are extra careful about how they spend their money for the next few months. Almost 84 per cent said they were cutting back on spending and 90 per cent expressed concern about their savings and financial future.

The economic uncertainty and the state of individual finances has also impacted investment with 76 per cent of the respondents said they are in no position to consider fresh investments at this time.

"The pandemic has changed the way we all function, affecting our physical, mental, emotional and financial well-being. Salaried individuals and professionals, in particular, are coping with the potential burden of job losses and pay-cuts," said IndiaLends founder and CEO Gaurav Chopra.

While 40 per cent of respondents would spend more on essential items, over 70 per cent would spend less on non-essentials, including entertainment, luxury and lifestyle in the post-Covid period. Around 75 per cent would cut spend on travel and luxury goods, 63 per cent on apparelas & accessories and 70 per cent on vehicles.

Another survey by Brandscapes Worldwide, an auto content and commerce platform for car andbike, finds that 66 per cent of consumers who had made inquiries prior to the lockdown, are going ahead with their decision to purchase cars within three months post-lockdown as Covid-19 has made using public transport risky.

However, enquiries for cars above Rs 7 lakh has significantly dropped, while demand for cars under Rs 3 lakh has picked up significantly.