Toyota offers unique ‘Covid package’ for dealers: Here’s what it means

The 'Covid package’ ranges from immediate settlement of any dealer claims to inventory interest subsidy for vehicles in dealer stock and spare parts payment deferment, among a host of other support measures.

By:March 31, 2020 10:11 AM

Toyota Kirloskar Motor (TKM) on Monday announced a dealer scheme called ‘Covid package’ for its associates in order to support and protect their interests to counter the repercussions brought about by Covid-19 and the nationwide lockdown that followed. The ‘Covid package’ ranges from immediate settlement of any dealer claims to inventory interest subsidy for vehicles in dealer stock and spare parts payment deferment, among a host of other support measures. Besides, TKM is working with its finance partners for a one-time reduction of inventory funding interest at this unprecedented situation.

This unique package will provide necessary assistance to the dealer partners to overcome the lockdown phase, ensuring their safety and well-being during these uncertainties. The package is designed after careful evaluation of individual dealership’s customised internal processes and fixed cost, thus allowing them optimum utilisation of the benefits. The primary objective of the package is to ensure liquidity to 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.

Naveen Soni, Senior vice-president, Toyota Kirloskar Motor, said, “At Toyota, we believe that our stakeholders, dealer partners and their employees are the most important assets and their safety and well-being is of utmost importance to us. This pandemic has financially impacted all our dealerships across India because cash inflow has become zero. While the government has announcement several relief measures including moratoriums, we have also studied the fixed cost expenses of dealerships and have come up with a relief package to assist in maintaining liquidity to improve cash flow. We hope to emerge stronger from this crisis, together.”

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