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Old 30th March 2020, 10:23   #16
GTO
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Default Re: Some car dealerships will go out of business due to Covid-19

Thanks to a Team-BHP Fan (who prefers to stay anonymous) for sending this information in. Heartfelt gratitude for sharing it with other enthusiasts via this Team-BHP page!

He is a car dealer.

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Hey GTO,

It is very disappointing that only Hero and Honda stood by dealers in filing a reconsideration plea at SC, but the result is nothing more than an eyewash. Hero took the boldest step and announced to take back every unsold BS4 vehicle from dealers and even compensate with interest + other incentives.

Bajaj too offered a hefty 15k amount to support on every unit unsold. TVS has only offered half of Bajaj. On the contrary, none of the 4-wheeler OEMs has offered any support to dealers.

Majority of dealers are running on rental setups, fixed expenses and salaries are unavoidable. This lockdown will have a lasting effect wherein no one will spend on capital incentive products for at least 6 months.

Many dealers I know have a lot of unsold stocks which will give them cash losses. Expect bankruptcies to rise in this sector.

https://auto.economictimes.indiatime...tners/74863534

Stay safe, stay at home!!
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Old 3rd April 2020, 16:08   #17
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Default Re: Some car dealerships will go out of business due to Covid-19

About 15 per cent EV dealers to shut shop post lockdown

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More than 200 dealers or 15 per cent of the 1,400 odd electric vehicle dealerships across the country will likely shut down once the Covid-19 lockdown is lifted, said the Society of Manufacturers of Electric Vehicles (SMEV), the apex body for the EV industry.

EV manufacturers say most dealerships of two wheelers and e-rickshaws, particularly in tier -3 or 4 towns, are owned by first time entrepreneurs who donít have the financial bandwidth to survive this crisis
Source: https://energy.economictimes.indiati...kdown/74961504
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Old 3rd April 2020, 16:14   #18
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Default Re: Some car dealerships will go out of business due to Covid-19

Here in faridabad same group has 3 tata dealerships. 1 in sec 28, 1 at YMCA and 1 in Palwal. Couple of days back Palwal dealership has been closed and employees told to find new jobs. Inside information is between the remaining 2, one will also get closed within 2 months. Reason is again Overheads and less sales etc. Quite unfortunate for the employees as given the current scenario it will be too hard to find a new job.
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Old 4th April 2020, 21:22   #19
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Default Re: Some car dealerships will go out of business due to Covid-19

Maruti Suzuki transfers Rs 800-900 crore to help coronavirus crisis-hit dealers.

Maruti Suzuki's move comes as due to the countrywide lockdown, dealerships are facing troubles with cash flow.

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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.

Maruti Suzuki's dealers had no BS-IV inventory by March 23 and that is why the company didn't extended support to them Maruti Suzuki is preparing to restore normalcy in its operations after the lockdown is lifted.

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Last edited by volkman10 : 4th April 2020 at 21:24.
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