Honda Cars India Ltd (HCIL) on Monday said it is releasing advance payments to its dealer partners in order to help them with cash flow to remain afloat in difficult business environment due to COVID-19 forced nationwide lockdown.
In normal business flow, payments to dealers are made as claims after the closure of the sales month.
The Japanese auto maker said it has also cleared all pending payments of dealers till March.
Besides, the company has given support on interest cost of fresh stock available at dealer before lockdown, HCIL added.
Furthermore, the company is ensuring that payments to its suppliers is being done on time, it said.
"Our dealers are the company's interface with the customers and it is important that they stay healthy and viable financially," HCIL Senior Vice President and Director (Sales and Marketing) Rajesh Goel said.
The company understands that due to the lockdown and no business activity, they will face cash flow concerns and measures are being taken to address these issues, he added.
The company is also taking various initiatives to help customers like extension of warranty and service timelines.
"Service and warranty are two of the most important factors that concern customers and we are addressing all of them during the lockdown period," Goel said.
Already, Honda India Foundation, the CSR arm of all Honda group companies in India, have pledged an aid of Rs 11 crore to central and state governments for relief and prevention efforts for the ongoing COVID-19 pandemic.
As part of this aid, Honda is immediately supplying 2,000 units of Honda engine-powered high pressure backpack sprayers to the various government agencies.
The sprayers will be used for disinfectant fumigation at hospitals, public transport, railway stations, public canteens and other common areas.
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