Electric vehicles (EVs) are making a dent in the internal combustion engine (ICE) sales, said Sridhar Sivaram, investment director of Enam Holdings, on Thursday, adding that valuations are stretched in the passenger vehicle (PV) but the commercial vehicle (CV) is an interesting space.

In an interview to CNBC-TV18, Sivaram said, “Two-wheelers will see some headwinds because the EV space specifically is making a dent; even though the numbers are small, people are pushing back their purchases. A passenger vehicle is reeling with a shortage of components more than demand. So that may come back but valuations are stretched there.”

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He believes that the year 2022 is likely to be a challenging year for investors. “Protect your capital, would be the mantra for 2022. If we can get over 2022 with either a small cut or a flat market. The prospects for the coming year for India is looking very good,” Sivaram said.

He also said that there is enough opportunity available in old economy stocks and if large listed public sector undertaking (PSUs) get privatised then it will rerate the entire basket.

Enam prefers pharmaceuticals and telecom from a China+1 strategy, said Sivaram.

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