Home >Companies >News >Covid-19: Honda offers financial aid to dealers amid lockdown
Photo: Reuters
Photo: Reuters

Covid-19: Honda offers financial aid to dealers amid lockdown

  • The company will buy unsold inventory of BS-IV vehicles from its dealers in Delhi NCR
  • SC has given Honda and Hero MotoCorp 10 days to sell 10% of unsold BS-IV inventory after the lockdown is lifted

Honda Motorcycle and Scooter India Pvt Ltd (HMSI), India's second largest two-wheeler maker, will buy unsold inventory of Bharat Stage-IV (BS-IV)-compliant vehicles from its dealers in the National Capital Region (NCR) and bear the interest cost of the full stock of BS-VI vehicles with its dealers across the country.

The company announced these measures to help its dealer partners maintain financial viability amid the nationwide lockdown that has brought sales to a grinding halt.

The government had imposed a 21-day national lockdown, effective 25 March and ending on 14 April, to contain the spread of coronavirus (covid -19) that has infected over 6,000 in India so far.

“Honda’s slew of measures includes advance payments of incentives and reimbursements across the three functions (sales, service and spare parts), buy-back of the BS-IV inventory lying unsold with few dealers majorly in Delhi NCR area, and also entirely bearing the interest cost of BS-VI inventory (physical plus transit) with the dealers for the 21 days of nationwide lockdown," said the company in a statement.

Last month, similar announcements were made by Hero MotoCorp Ltd, the country’s largest two wheeler manufacturer, as the company along with Honda, had significant BS-IV vehicle inventory with dealers, which couldn’t be sold before 31 March.

Both the companies had also approached the Supreme Court (SC) for a reprieve, but the apex court just gave them 10 days to sell 10% of the unsold inventory, once the lockdown is lifted.

India moved to BS-VI emission vehicle norms since 1 April. Sales and manufacturing of BS-IV vehicles are not allowed anymore.

Honda, during these challenging times, has extended an exhaustive financial support package to its dealers, said Yadvinder Singh Guleria, director, sales and marketing, Honda.

“The support package will effectively provide immediate liquidity to our dealer partners and we are confident that it will comprehensively ease their business continuity anxiety and improve cash flow. Providing yet another major support, Honda shall also bear the interest cost of the BS-VI vehicles inventory at all its dealers for the entire 21-day lockdown period," said Guleria.

Subscribe to newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperLivemint.com is now on Telegram. Join Livemint channel in your Telegram and stay updated

Close
×
My Reads Logout