Big pileup of Hero BS4 vehicles is a headache for the company and the coronavirus lockdown has ruined all their plans of liquidating them on time…
It appears that Hero MotoCorp is one of the maker which is engulfed in BS4 stock the most. Or let us say its dealers are! There have been various numbers that have been reported widely, however, in a latest, senior officials have revealed that the company’s dealers are sitting on an inventory of roughly 1.40 Lakh units.
This is a lower number than earlier predictions but still a big chunk to liquidate. The total inventory worth is pegged at Rs 500 crores. It was reported by a prominent portal that Pawan Munjal has assured dealers of buying back the non-compliant vehicles from their yards. However, that is not the case according to a new update at CNBC.
According to Hero officials, Hero will not be picking back the motorcycles and scooters which are lying at dealerships and instead the company has offered a financial package to its dealers as a cushion. This means that it is upto dealers to liquidate the stock to the best of their means.
It is speculated that Hero (and probably few other makers) continued to make 2-wheelers complying to the outgoing BS4 emission norms even till late February knowing that the deadline to exhaust them was barely 30-40 days away (on 31st March 2020). Amidst all this the Coronavirus pandemic hit the country and a major lockdown of 21 says has been announced under which no one is allowed to move out of his home and only the essential services are open.
Rival makers Bajaj, TVS and Royal Enfield have already announced that they have either completely exhausted their BS4 stock or have very little to liquidate.
It was impossible for Hero to call such a massive stock back to its factories. The company does not have the numbers to export them to other countries. We have done a related report here.
Source – CNBC