The pick up in auto sales is a combination of pent-up demand as well as the move towards private mobility post-COVID, market analyst Bharat Iyer said in an interview to CNBC-TV18.

"If you were to ask me to attribute percentages to both factors then I would say it is more pent-up demand. Most of these products retail in the mid to the higher end of the market and demand destruction there has not been very severe and what we saw was supply went off the market and now that supply is coming back so that pent-up demand is there," Iyer said.

He also said that the COVID will trigger a shift in consumer spending from the traditional sectors towards new-age sectors.

"Let's face it, this is a very significant event which is going to lead to a very meaningful shift in terms of consumer behaviour as well as consumer spends both within the sector and intra-sector," he said.

"I would make the argument that consumer spending will shift from traditional sectors like automobiles or real estate or resources for that matter, into new age areas like communication services, healthcare and IT services and so on," Iyer said.

Watch the video for the full interview

First Published:Oct 2, 2020 8:18 PM IST