Honda to buyback unsold BS4 inventory

- Will buyback unsold BS4 vehicles at Honda Exclusive Authorized Dealer

- Made payments of incentives and reimbursements

- Pledged Rs 11 crore aid towards COVID-19 relief and preventive measures

The ongoing Coronavirus Pandemic has caused several manufacturers to temporarily shut operations. Dealerships, too, are closed due to the 21-day lockdown announced by the Government of India. Honda Motorcycle and Scooter India has announced several measures through which it plans to support its dealer partners. The company said in a circular that it will take back all the BS4 vehicles lying unsold with few dealers (Honda Exclusive Authorized Dealer), majorly in Delhi/NCR, as on 31 March 2020.

The Indian arm of the Japanese two-wheeler manufacturer will also bear the interest cost of the inventory of the BS6 vehicle (physical and transit) at all its dealerships for the entire 21-day lockdown period. The company has also made payments of incentives and reimbursements, amounting to Rs 1,700 crore, to its suppliers, dealers and service providers.

Speaking about the measures that the company has taken, Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India said that the support package will effectively provide immediate liquidity to the company’s dealer partners and it will ease their business continuity anxiety and improve cash flow.

Apart from providing support to its dealer partners, Honda has pledged Rs 11 crore aid towards COVID-19 relief and preventive measures. Honda dealers have contributed to the relief measures through free distribution of meals and food grains, free masks and sanitiser distribution, funds donation to State/ Central Government etc.