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Hero MotoCorp extends its helping hands to support its dealers

Though these have been testing times for sure, we have coped well, heroes, be it the medical professionals, the police personnel or even the media they have stood up giving each one of us to reasons to keep our cool in these tense times.

Several auto manufacturers have also stepped up and lent their helping hands to support the collective fight against the pandemic. Be it MG announcing free sanitization facility for all police vehicles post lockdown or Mahindra developing indigenous ventilators to help the government in case of utter chaos, the testing time is surely bringing the best out of us.

India's largest two-wheeler company, Hero Motocorp, gave its dealers a reason to breathe a heavy sigh of relief by announcing a financial package to its dealers. 

The package was announced to help the dealers in improving profitability and liquidity, this will be a big boost as the dealers have been facing the situation of liquidity crunch amid nationwide lockdown.

Hero showroom

Official statement

Hero MotoCorp Chairman Pawan Munjal made the relief declarations over a video conference; the relief package includes revised pricing structure on new products, financial support towards interest on dealer stocks and financing options from Hero MotoCorp's retail finance arm – Hero FinCorp.

'We have revised the pricing structure that will enhance your profitability, and the new structure will be applicable on all dispatches post the lockdown. Additionally, I am also happy to announce financial support towards the interest on the dealer stock for the complete lockdown period of 41 days,” Munjal said at the Town Hall.

Hero FinCorp to the rescue

The two-wheeler giant has come up with rescue solutions in assistance with its financial arm – Hero FinCorp. The financial subsidiary of Hero MotoCorp will support the dealers with liquidity for operating expenditure (OPEX).

FinCorp would be paying out pending in-line amounts with respective dealer wages and provide rental liabilities at subsidized rates.

Dealers express their contentment

Dealers were happy and cherished chairman Pawan Munjal for addressing dealer's concerns, with similar opinions they were all content with the package that Chairman Pawan Munjal announced.

While talking with ET Auto, Bipin Batavia of Shivang Automobiles (Hero MotoCorp Nashik based dealer) said 'These measures, along with the digital initiative by the Company, will completely transform our business in these challenging times. The positive interaction with the Chairman addressed most of our concerns.”

One of the other Hero MotoCorp dealers, Arvind Gupta (Hi-speed bikes, Guwahati) said 'It is a comprehensive and robust package that would translate into an increase in our margins. With the waiver on the interest of our stocks and the journal on our post-COVID-19 opening procedure, everything that was on our mind was addressed even before we could ask for it,” 

Company also assured the dealers that it has scripted full-proof plans for re-opening of operations once the lockdown is lifted.

Author's Take

When corporations step up in such manners to support those associated, it definitely deserve big heaps of praise. We all have our decelerated professional lives to worry about, but with bigger problem to address; we need to keep our cool and fight it together.

STAY Homey!! STAY SAFE!!