Hero dealers liquidated unsold stock to their employees.
The BS6 transition has been a smooth ride for some and a very bumpy ride for many automakers that still have a huge inventory of BS4 vehicles. One of the affected companies is Hero MotoCorp.
The Indian 2-wheeler maker had an unsold BS4 stock worth 1.4 lakh units. The company will absorb around 15,000 units from their dealer network in Delhi-NCR and will eventually export these units to Asia and Africa.
While they will absorb inventory from Delhi-NCR dealers, they won’t take back any stock from other dealers across the country.
These dealers have billed and registered the remaining BS4 stock before 1st April online in their employees’ names. These units will be further sold as second-hand vehicles to the customers.
Hero MotoCorp is providing financial support of Rs. 10,000/- per vehicle to dealers. The company is spending Rs. 125 crores to help dealers utilise the stocks.
Hero BS4 Stock
– Dealers registered unsold stock in employee names
– Hero is providing financial support of Rs. 10,000/- per vehicle to dealers
– Hero MotoCorp’s total BS4 inventory was 1.4 lakh units
Source – CNBCTV18.com