Homeauto News

    Financial impact of unsold BS-IV stock limited to Rs 125 crore, says Hero MotoCorp

    auto | IST

    Financial impact of unsold BS-IV stock limited to Rs 125 crore, says Hero MotoCorp

    Mini

    Hero MotoCorp has approximately 1.4 lakh BSIV units worth Rs 500 crore in dealerships across the country, sources told CNBC-TV18.

    Hero MotoCorp, India's largest two-wheeler manufacturer, would be taking back 15,000 unsold BS-IV units from its dealerships in Delhi and NCR region. Hero MotoCorp has approximately 1.4 lakh BS-IV units worth Rs 500 crore in dealerships across the country, sources told CNBC-TV18.
    The highly placed sources at Hero MotoCorp confirmed that the company would be taking back only around 15,000 units from the dealer network in Delhi-NCR, which would be later exported to markets in Asia and Africa.
    The company says its dealers have already billed the remaining BS-IV stock. Senior Officials at Hero MotoCorp told CNBC-TV18 exclusively, "The balance 1.25 lakh vehicles have been sold by dealers to their employees using online platforms, for which we have provided a support of Rs 10,000 per vehicle. So the actual financial impact on the Company would only be limited to above extent".
    A simple calculation reveals that Hero MotoCorp's financial support to dealers would be Rs 125 crore.
    Therefore, while the company's total BS-IV inventory may be worth 500 crore rupees, the actual financial implication due to dealer support would be limited.
    The sources confirmed that vehicles which have been billed to employees and already registered before April 1 will now be sold as second hand vehicles and the company is partially compensating them for these units.
    Hero MotoCorp chairman Pawan Munjal, while addressing the company's dealers last week, had said, "We will not let you suffer on account of the BS-IV stock. Our teams are working diligently and tirelessly to find ways and means to absorb or utilise the stocks and they will connect with you soon on this. We are all in it together and we shall overcome this together."
     
    This story was updated with latest inputs
    next story

      Market Movers

      View All
      CompanyPriceChng%Chng