Vehicle manufacturers have assured their dealer partners of financial and other support as they are facing a major crisis due to the lockdown coupled with unsold BS-IV inventory.
Dealers have claimed they have inventory worth ₹6,000 crores and a countrywide lockdown has stalled any plans to liquidate stocks.
Two-wheeler maker, Hero MotoCorp, which has a large number of BS-IV vehicles at the dealership promised the dealer partners to take back all the unsold BS-IV stocks at least in the Delhi-NCR. The assurance came during a video conference link-up between Pawan Munjal, Chairman and top brass of Hero MotoCorp with dealer partners. “We will not let a single dealer suffer,” Munjal reassured dealers.
“We will not let you suffer on account of the BS-IV stock. Our teams are working diligently and tirelessly to find ways and means to absorb or utilize the stocks and they will connect with you soon on this,” Munjal added.
Toyota Kirloskar Motor (TKM), even though it doesn't have to grapple with any BS-IV inventory has promised help to its dealer partners. “We are aware of the situation arising from the lockdown situation and we are discussing within our dealer council the kind of support they are seeking. We will certainly be compassionate,” said Naveen Soni, senior vice-president for sales and service at TKM.
German auto manufacturer Volkswagen Passenger Cars has also come forward in support of its dealers to deal with the crisis. The company announced a 100% payout of the P4 programme for Q1, 2020 (with the following waivers) -Waiver of Overall qualifier condition relating to the financial discipline. It has extended on Infrastructure support; a 100% upfront payout.
Renault India too has decided to extend support to dealers. “Our support will continue with dealer fraternity during this lockdown, we are giving inventory interest waiver and we take necessary steps,” said managing director Venkatram Mamillapalle.
News Source: The Economic Times: URL: https://bit.ly/3dGtcHq