Hero dealer margin per vehicle has been increased; this will offer the troubled dealers with higher cash in hand to sustain these uncertain times…
Pawan Munjal, head of Hero MotoCorp, has been very active during these discomforting days. Spread of the deadly COVID-19 virus has caused a havoc in the whole world and the Government of India decided to announce a major lockdown in the country.
As a result there is no buying and selling of vehicles which has come as a shocker for the already reeling 2-wheeler industry. Mr Munjal has talked to the company’s dealers twice in this duration to comfort them and offer support packages.
After the 28 March Town Hall when Hero announced certain measures (which also included absorption of Rs 10,000 per BS4 vehicle), in a latest, the India’s largest maker has shared another financial relief package for its dealers.
According to an online report, the relaxations in the package will offer higher margins per vehicle to dealers. This will instantly give them the much needed increased cash in hand to sustain during the current uncertain times.
The exact quantum of the margin increment has not been shared but we know that it will be effective from all dispatches from 1st May 2020. The package also includes support in the form of interest on dealer stocks for the complete 41 day lockdown period along with tailored financing options from Hero FinCorp – Hero’s retail finance company.
Earlier, electric two-wheeler maker Okinawa has announced a hike in dealer margin which will give them substantial amounts to continue disbursing salaries along with carrying out their monthly expenses at a time when businesses were shut for a such big period.
Source – Economic Times