Honda supports infusion of additional liquidity to improve cash flow at its dealers
As the nation-wide lockdown now enters its 3rd week, Honda Motorcycle & Scooter India Pvt. Ltd. today announced its next set of strong relief measures designed to support sales and service business partners across India during the unprecedented COVID-19 pandemic situation.
With its unprecedented scale and subsequent nationwide lockdown, COVID-19 has severely impacted the business continuity of dealer partners, who were already under immense pressure due to the 16-month-long demand industry slowdown.
Elaborating on how Honda as a responsible corporate is committed to taking care of its dealer partners in these uncertain times, Mr. Yadvinder Singh Guleria, Director - Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. Said, "In this challenging times, Honda 2Wheelers India has extended an exhaustive financial support package for its dealers. 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 & 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."
Honda's slew of measures includes advance payments of incentives and reimbursements across the 3 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.
Honda had earlier announced extension of timeline by 2 more months to customers whose free service & warranty was scheduled during lockdown (15th March to 15th April). Honda also released payments approximately amounting to Rs. 1,700 Crores to all its suppliers, dealers and service providers on time. This further eased the liquidity crunch that its business partners faced due to the sudden Covid-19 lockdown situation, and supported them for timely payment of March salaries to their workforce and vendors.
Honda family says Stay Home, Stay Safe:
Parallely, Honda and many of their dealer partners, as One Honda family continue to proactively fight for the cause and contribute to the society. On April 1st, Honda India foundation - the Corporate Social Responsibility (CSR) arm of Honda group companies in India pledged 11 crore aid towards COVID-19 relief and preventive measures. Honda Associates across all 5 Honda group companies too have voluntarily pledged to donate their 1 days salary towards the total relief aid. Across India, dealers too have contributed through free distribution of meals & food grains to the needy, Free masks & sanitizer distribution, funds donation to State/ Central Government etc.