Post Covid 19, NBFCs and Banks can focus for business in the used car space and in the two wheeler and high end bicycle segment. People will shun public transport at least for a year till confidence is restored or a vaccine or a cure is found and put in place for mass production and delivery. Private transport will be the order of the day. Customers will focus on small cars while people will avoid purchasing high end cars till the economy and job situation revives.

SMEs will be constrained to increase leverage to tide over the immediate liquidity crisis but will have medium term ramification of lack of liquid earnings (also constrained by lack of skilled labour) to service the increased debts unless government steps in to boost earnings through a widespread income distribution plan. Pushing credit at this juncture to boost liquidity is only to postpone the inevitable i.e of large scale defaults later.

Large corporates will take a hard look at their manufacturing, warehousing and sourcing plans and effect restructuring to avoid any mass scale disruptions in future. This will give rise to opportunities but also lead to higher risk for their existing suppliers.

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