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Photo: Reuters
Photo: Reuters

Kia Motors announces measures to protect financial viability of dealers

The company will take on the interest cost of the dealers for the inventory of vehicles they purchased and underutilized dealer funds have already been remitted back to their current accounts

Kia Motors India – one of the new entrants in the Indian market – on Tuesday, announced a slew of initiatives to help protect the financial viability of its dealer partners, as car sales have come to a halt due to the Covid-19 pandemic. As showrooms have remained closed over the last three weeks due to lockdown measures announced by the union government to contain the spread of Covid – 19, car makers have announced financial help for their dealer partners.

The company will take on the interest cost of the dealers for the inventory of vehicles they purchased and underutilized dealer funds have already been remitted back to dealer’s current account.

According to the company, warranty payments have already been credited to dealers and priority clearances within 15 days post lockdown for all dealer invoices have also been announced by the company.

“Our dealer partners are one of the key pillars of growth for us and form a foundation for Kia to connect with the consumers in the country. We are committed to offer our continued support in these testing times, and will undertake all necessary steps to help them navigate through the situation together with us. Dealer viability and stability is at the core of this program and we hope to spread positivity through it," said Kook-Hyun Shim, managing director and chief executive, Kia Motors India.

Kia entered the Indian market in 2019 with a mid-size sport utility vehicle, Hector and subsequently followed up with a premium multi- purpose vehicle, Carnival. The company is expected to launch its first company SUV in the next few months.

Kia’s only manufacturing capacity is based out of Andhra Pradesh and has a capacity of producing 3 lakh units per year.

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