Toyota Kirloskar Motors has announced the introduction of a support and sustenance package for its dealer partners affected by the coronavirus outbreak and the nationwide lockdown. Christened the 'COVID Package' it has been designed to offer the necessary assistance to the dealer partners to overcome the lockdown phase and protect their interests. The main objective here, of course, is to ensure liquidity to well sustain the business during the lockdown, thus protecting dealer partners for approximately 38 to 75 days based on individual dealer overheads, by giving cash flow support that will help them stay afloat during these tough period.
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Announcing the COVID Package, Naveen Soni, Senior Vice President, Toyota Kirloskar Motor said, "This pandemic has financially impacted all our dealerships across India because cash inflow has become zero. While the Government has announced several relief measures including moratoriums, we have also studied the fixed cost expenses of dealerships and have come up with a relief package called the COVID package to assist in maintaining liquidity to improve cash flow. We hope to emerge stronger from this crisis, together."
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Toyota's main objective here is to ensure liquidity to well sustain the business during the lockdown period
Under the COVID package, Toyota dealers will get benefits that include - immediate settlement of any dealer claims to inventory interest subsidy for vehicles in dealer stock and spare parts payment deferment amongst a host of other supports. Furthermore, Toyota is also working with finance partners to offer dealers a one-time reduction in inventory funding interest. The company says that the package has been designed after careful evaluation of individual dealerships' customised internal processes and fixed cost thus allowing them optimum utilisation of the benefits.
Among other preventive and support measures, Toyota has already suspended production other operations at its Karnataka facilities and has assured its customers that the company can be reached through its customer care service network for any vehicle-related problems. The company has also announced that it will extend warranty dates, in case someone's warranty expires during the lockdown days.
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