Toyota Kirloskar Motor Pvt Ltd – a subsidiary of Toyota Motor Corp on Friday announced its plan to protect the financial viability of its dealer partners during the Covid-19 pandemic though a special package known as ‘Covid Package’.
The primary objective of the package 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 sail through these perilous times, the company said in a statement.
Ever since the union and state governments have started asking people to ensure social distancing to control the increase in a number of infected, footfalls at automobile dealerships have halved and have led to significant decrease retail sales.
The ‘Covid Package’ ranges from an immediate settlement of any dealer claim to inventory interest subsidy for vehicles in dealer stock and spare parts payment deferment amongst a host of other supports. Besides, the company is working with its finance partners for a one-time reduction of inventory funding interest at this unprecedented situation, the statement further added.
According to Naveen Soni, senior vice-president, sales and marketing, Toyota Kirloskar Motor, while the union government has announced several relief measures including moratoriums, Toyota has also studied the fixed cost expenses of dealerships and has come up with a relief package to assist in maintaining liquidity to improve cash flow.