Coronavirus: Toyota announces care package for dealer partners in India
Toyota is one of the first carmakers to announce a financial package for its dealer partners to over the disruption caused by the coronavirus related 21-day national lockdown.
The Japanese carmaker Toyota has announced a special dealer service package called COVID Package, to support and protect its interests. This will provide necessary assistance to the dealer partners to overcome the lockdown phase, ensuring their safety and well-being during these uncertainties.
The primary objective of the package is to ensure availability of liquidity with the dealer partners. This will allow Toyota dealerships to sustain their business during the lockdown. The package has been curated depending on the individual needs of each dealership partner and includes support for approximately 38 to 75 days based on individual dealer overheads. Toyota hopes that this cashflow support will help them sail through these perilous times.
Toyota will be making an immediate settlement of any dealer claims to inventory interest subsidy for vehicles in dealer stock and spare parts payment deferment. Besides, because of this unprecedented situation, Toyota is working with its finance partners for a one-time reduction of inventory funding interest.
Speaking about this initiative, Naveen Soni, Senior Vice President at Toyota Kirloskar Motor said, “At Toyota, we believe that our stakeholders, dealer partners, and their employees are the most important assets and their safety and well-being is of utmost importance to us. This pandemic has financially impacted all our dealerships across India because cash inflow has become zero. 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. We hope to emerge stronger from this crisis, together.”
In India, Toyota’s product portfolio includes the sedans Yaris and Camry Hybrid, MPVs Innova and Vellfire, and SUVs Fortuner, Prado, and Land Cruiser. It also retails the plug-in hybrid Prius. The company has an installed capacity of 3.10 lakh units annually.
(Edited by Suman Singh)