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File photo used for representational purpose.  (Bloomberg)
File photo used for representational purpose. (Bloomberg)

Toyota Kirloskar Motor rolls out package to support dealers amid lockdown

  • The package will provide necessary assistance to the dealer partners to overcome the lockdown phase, ensuring their safety and well being during these uncertainties, TKM said in a statement.

Toyota Kirloskar Motor (TKM) on Monday announced a package, including monetary support, for its dealers amid nationwide lockdown due to the coronavirus pandemic.

The package will provide necessary assistance to the dealer partners to overcome the lockdown phase, ensuring their safety and well being during these uncertainties, TKM said in a statement.

(Also Read: Toyota to make face masks in US to aid coronavirus battle)

The primary objective of the package is to ensure liquidity to sustain the business during the lockdown thus protecting dealer partners for around 38 to 75 days based on individual dealer overheads by giving cash flow support that will help them sail through these perilous times, it added.

The company's 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 supports, TKM said.

Besides, TKM is working with its finance partners for a one-time reduction of inventory funding interest at this unprecedented situation, it added.

“At Toyota, we believe that our stakeholders, dealer partners and their employees are the most important assets and their safety and wellbeing is of utmost importance to us," TKM Senior Vice President Naveen Soni said.

This pandemic has financially impacted company's dealerships across the country because cash inflow has become zero, he added. "

While the government has announced several relief measures including moratoriums, we have also studied the fixed cost expenses of dealerships and have come up with a relief package called the COVID package to assist in maintaining liquidity to improve cash flow," Soni said. TKM, which sells popular models like Innova and Fortuner, currently has 374 dealerships across the country.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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