Short Extension of BS-VI implementation in this Lockdown Period Can Hardly Bring Any ChangeAnusha Sathish (Author) Published Date : Mar 30, 2020 22:37 IST
Amid lockdown no extension of BS-VI implementation - HMCL at its snail phase:
Force majeure has to be invoked as this is an unforeseen and challenging phase, and as of now, as there is no sign of receivables and Hero Motocorp has to suspend its payments to the vendor for the time being. The sales of motorcycles and scooters have come to a standstill due to the coronavirus crisis.
The company was able to manage demonetization but seriously stranded with this COVID 19 crisis lockdown. On top of that, the BS-VI implementation is around the corner, and the Supreme Court denied to award extension amid lockdown.
The company highlighted that the BS-IV and BS-VI vehicles remain untouched and unsold for quite some time, and BS-IV vehicles have very limited time to evacuate the space in the dealership. The Supreme Court has given an extension time of 10 days post-lockdown to sell the vehicles except in the Delhi region, but it is going to be a herculean task.
In this, out of the blue situation, the company extended its regret that it will not be able to meet all its obligations. Also, ten days extension does seem not doable as Hero has a total of 700,000 unsold BS-IV motorcycles and scooters.
The hero was one of the companies which always supported its stakeholders, both internal and external, and it will continue its support. Despite the challenging circumstances, the payments are being processed as early as possible, and on-time payments to many MSMEs and small-scale industries are promised.
Nevertheless, the company requested an apology in case there is a delay in payments. Amidst all this chaos, as of now there, the cabinet ministry informed that there are no plans stated to extend the lock-down as of now, and rumors are not to be processed. The Prime Minister also sought an apology for the lock-down.
Short Extension of BS-VI implementation in this Lockdown Period Can Hardly Bring Any Change