Maruti Suzuki has already made all the pending payments to its dealers and is trying to ensure that they don’t face any liquidity crisis and their profits are not affected.
The Coronavirus situation in the country has affected businesses on a large scale and small businesses need support to get back on the track after over a month long lockdown. Besides what the government has been doing by means of funds and policies to help resuming operations, big manufacturing units including automakers too are extending support to their franchise and ancillaries. Maruti Suzuki has already made all the pending payments to its dealers and is trying to ensure that the dealers don’t face any liquidity crisis and their profits are not hurt.
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Speaking to Siddharth Vinayak Patankar, Editor-In-Chief- carandbike on the Freewheeling With SVP webisode, Shashank Srivastava, Executive Director- Marketing & Sales- Maruti Suzuki India said, “We are very concerned about dealers’ profitability and always feel that sales can be strong only when dealers are strong. We have helped in terms of transferring the cash into dealers’ accounts so that they get so they get over this crisis. Also we have given complete inventory support for this lockdown period. So I think this process should help and we have also spoken to some banks and most of them have agreed to defer by three months on the payment of interest in their inventory. So going forward we’ll continue to watch the cash flow requirements of dealers and act accordingly.”
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We had already reported last month that Maruti Suzuki had transferred around ₹ 900 crore to support its dealers as soon as the nation was put under this prolonged lockdown. The company had also exhausted all its BS4 inventory before the lockdown and has provided its dealers with complete inventory support so that deliveries are not delayed at their end.