Lockdown: Honda to Bear Interest Cost of Inventories at Dealerships

Various slow sellers like the CBR250R were axed in this transition...

Honda has pledged to support its large dealer family during these extremely testing times. It has already announced support for the people of the country earlier. It has acknowledged that this Coronavirus pandemic and the resultant lockdown by the Government has severely impacted its dealer partners across the country which were already under tremendous pressure because of the 16-month long slowdown.

To help them in these testing times, Honda has announced a financial support. Here is a quick list of measures the company has planned..

  • Honda will be bearing the entire interest cost of the complete BS6 inventory which includes the physically present units as well as the ones that are in transit.
  • This is applicable for all the company’s authorized dealers in the country for the period of 21 days of lockdown.
  • It has announced advance payments of incentives and reimbursements across its sales, service and spare part functions.
  • The Japanese giant has also announced a buyback program of the unsold BS4 inventory for its dealers in Delhi and NCR region.
  • Honda says it has released payments worth Rs 1700 crores to its suppliers, service providers and dealers on time to ease the liquidity crunch with its business partners.

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These measures will trickle down to the employees as well because with the money in hand, dealers and other business partners can pay their staff on time.

Honda Announces Buy-Back of BS4 Vehicles From Few Dealers

Honda has also extended the service and warranty timelines for its customers for two extra months.

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