Honda Two-wheelers Extends Financial Support For Its Dealer Partners

The two-wheeler industry in India was already suffering due to the 16-month-long slowdown in the market. And the COVID-19 pandemic just seems to be adding fuel to the fire. The nationwide lockdown has had a drastic impact on business continuity of several dealer partners. Taking the situation into account, Honda has announced strong relief measures to support sales and service business partners across India. 

Honda's relief measures include advance payments of incentives and reimbursements across the 3 sectors (sales, service and spare parts), buy-back of unsold BS4 inventory (especially in Delhi NCR), as well as bearing the entire interest cost of BS6 inventory (physical plus transit) with the dealers for the 21 days of nationwide lockdown. According to Honda, the payments released for its suppliers, dealers and service providers amount to approximately Rs 1,700 crores. 

Honda believes these measures will help its business partners who’ve been facing financial difficulties during the sudden COVID-19 lockdown. The flow of cash has also helped its business partners roll out timely salaries for the month of March for its workforce and vendors.

Also Read: Bajaj, Hero Cycles Donate Rs 100 Crore Each For Fight Against COVID-19

Honda had earlier announced an extension of timeline for customers whose free service and warranty schedule coincided with the lockdown. Essentially, support for two-wheelers whose free services and warranty expires between March 15 and April 15 receive a two-month extension which ends between May 15 and June 15. 

Hero MotoCorp also joined the bandwagon and extended its support to its dealer partners by buying back all unsold BS4 units after the extension period ends.