The nationwide lockdown called to fight against the novel Coronavirus might definitely aid in the spread of the virus but, it has brought th...
The nationwide lockdown called to fight against the novel Coronavirus might definitely aid in the spread of the virus but, it has brought the economy to a standstill. The auto business too has taken a hard hit and its dealerships at the forefront that are worst impacted. We told you last week about carmakers coming up with a specific COVID-19 relief package, and India's largest carmaker- Maruti Suzuki has now transferred around Rs. 900 crore to its dealers.
Also Read: Coronavirus Lockdown: Carmakers Extend ₹ 1800 Crore Support To Dealerships
According to a CNBCTV18 report, Maruti Suzuki has transferred the fund to support its dealerships during the coronavirus crisis that has resulted in steep sales decline. The move is in-line with other automakers like Toyota who have been supporting their dealer partners with funds and advances ahead of the schedule. Shashank Srivastava, Executive Director, Sales & Marketing- Maruti Suzuki told CNBCTV18, "Dealers are facing problems with cash flow right now. We have transferred Rs 800-900 crore in cash funds to dealers to support them at this point." He also went on to mention that Maruti Suzuki's dealers had exhausted BS4 inventory by March 23 so the company didn't extend support to them. He also said that Maruti Suzuki is preparing to restore normalcy in its operations after the lockdown is lifted. Over 70 per cent of the carmaker's product line-up were already BS6 complaint at the start of this year.
Also Read: Car Sales March 2020: Coronavirus Hits Maruti Suzuki's Volumes, Sales Down By 47 Per Cent
Maruti Suzuki is extending support to dealerships at the time of the Coronavirus pandemic.
The Society Of Indian Automobile Manufacturers (SIAM) had earlier said that the industry is facing a loss of Rs. 2300 crore per day of closure. Maruti Suzuki recorded a huge slump of 47 per cent in overall sales last month at 83,792 units, as compared to the 158,076 units sold during the same month in 2019. The sale decline to a large extent was due to coronavirus outbreak that has gripped the nation in a lockdown, forcing Maruti Suzuki to suspend all production and sales operations from March 22 onwards.
Source: CNBCTV18
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