Honda Provides Rs 1,700 Crores Coronavirus Relief To Its Dealer Partners

The relief package will take care of its dealer’s existing BS4 stock and BS6 inventory as well

Two-wheeler dealerships have been suffering losses due to the COVID-19 lockdown.  Honda’s relief package to its dealer partners includes advance payments and buyback of unsold BS4 stock.  Honda had previously announced warranty and free service extension for its customers. 

Two-wheeler dealerships have been suffering losses for the past 16 months and quite recently due to unsold BS4 stock. The coronavirus pandemic has forced the government to initiate a 21-day lockdown, leaving dealerships in the lurch. Honda has announced a relief package to help its dealer partners out of this sticky situation. Like other bikemakers, Honda had also announced warranty and free service extensions for customers during the coronavirus lockdown. You can read about it here. 

The relief package includes advance payments of incentives and reimbursements. Honda will buy back the remaining inventory lying with its dealers specifically in the Delhi-BCR region. Hero MotoCorp has also announced that it will buy back unsold BS4 stock from its dealer partners. Honda will also pay the interest costs for dealer inventory and transit for BS6 vehicles stuck during the 21-day lockdown period. Honda claims it has released payments of close to Rs 1700 crores to its dealer partners, which should help them financially and allow them to pay their workers and staff on time.

Also read: Honda Activa 6G BS6: Pros, Cons & Should You Buy One? 

It is heartening to see a manufacturer step up to help its small business partners to stay afloat in these trying times. We hope other bikemakers get inspired and do the same. 

Here’s the full-press release from Honda:

Honda 2Wheelers India pledges support to its dealer family to maintain business continuity

Honda supports infusion of additional liquidity to improve cash flow at its dealers

 

Gurugram, April 09, 2020: 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.