Toyota’s ‘COVID’ relief package for its dealers explained

The automotive sector is one of the many hard-hit industries due to the COVID-19 pandemic. After the nationwide lockdown was announced (now extended) and social distancing guidelines enforced since late March, businesses for most dealerships across the country have come to a grinding halt. While many automobile brands are undertaking CSR initiatives by manufacturing ventilators and offering PPE for frontline workers, Toyota is looking in its immediate network and is ensuring that its dealer network receives adequate support to sustain through these perilous times.

During an Instagram live session, Naveen Soni, senior VP, sales and marketing, Toyota Kirloskar Motor Ltd, said, “For our dealers, we will make sure that COVID is not a bad word. We know they’re going through tough times. There’s zero cash inflow and yet at the same time they have to serve their customers’ requirements while also ensuring that the staff doesn’t leave.” To address this issue, Toyota came up with a relief package called ‘COVID’ for their dealers. Each letter of the word COVID stands for a measure undertaken by the brand.

C: Claim settlement

Pending claims to be paid and settled depending on their details and validity.

O: Offsetting monthly payments

On a monthly basis, dealers owe the manufacturer a certain sum that they can now pay with a one-month delay, buying them time and flexibility to plan their finances.

V: Vehicles in transit

With the lockdown imposed, state borders are sealed and transport completely halted. The vehicles stuck in transit will be claimed by Toyota to avoid additional burden to the dealers.

I: Interest relief

Toyota has taken away the additional interest charged on dealer inventories. Naveen Soni reiterated the fact that Toyota maintains a lean inventory system and the inventory burden is considerably less.

D: Dealer Expectation Standard for India (DESI)

Toyota to release annual incentives that the dealers are eligible for.

The COVID relief package is released for 79 Toyota dealer groups across 240 outlets in the country. The benefits of the package will be available for a minimum 38 days and maximum 75 days depending on how the government plans to reopen to economy. The automotive sector will take time to recover in the months to come, but it is crucial that all businesses involved, right from the supply chain to the dealer partners stay afloat to ensure the best possible recovery.