- Payments to some suppliers suspended
- Force majeure clause may extend beyond 21-day lockdown in the country
- BS4 inventory cleared ahead of the original emission norm deadline
Due to the uncertainty caused by the ongoing Coronavirus pandemic, Indian two-wheeler manufacturer, Royal Enfield has invoked the ‘force majeure’ clause. By invoking the clause, Royal Enfield has suspended payments to some of its suppliers.
The company reportedly said in a circular that it had no choice but to declare this as force majeure and suspend any or all of its contractual obligation. The company is yet to determine whether the clause will be extended beyond the 21-day lockdown period in the country that ends on 14 April 2020.
Speaking on the matter, a Royal Enfield spokesperson stated that the company has not postponed or suspended any payment for material and goods already supplied or services already rendered. The spokesperson added that the company has prioritised salary payments to its employees.
In other updates, Royal Enfield has announced in a press statement that the company has successfully cleared its BS4 inventory well in advance of the original BS6 deadline i.e. 31 March 2020. In comparison, brands like Hero MotoCorp have a considerably large inventory of BS4 motorcycles. Hero MotoCorp will take back all the unsold BS4 vehicles from its dealers.
Source: ETAuto
