Korean carmaker Kia has announced a series of measures to ensure the sustenance of its channel partners during the ongoing lockdown which, in its current phase, is slated to be observed till May 3. The shutdown has shuttered auto sales and service networks across the country, severely impacting their cash flows.
As part of its four-point plan, Kia will support interest cost of dealer stocks, including vehicles in physical and transit stock. The company has already remitted unutilised dealer funds in its possession, along with crediting accepted service claims for warranty in an effort to provide further relief to channel partners. Lastly, the auto major is crediting extended warranty payments to dealers and is also assuring priority clearance of all dealer invoices within 15 days of the lockdown being lifted.
These measures should help alleviate some of the stress on Kia’s network which, prior to the COVID-19 outbreak, posted a commendable performance over FY2020. Despite severe economic headwinds, the automaker managed to gain a 9 percent utility vehicle market share over the past year.
To continue the momentum, Kia Motors India has also revealed that it will be undertaking multiple initiatives to boost digital sales in the coming days. It has advised its 265 touchpoints across the country on sanitation and social distancing norms in order to prepare them for retail activities in the post-shutdown era.
For the customers, Kia had already announced an extension in the free service schedule till July 2020. Other COVID-19 related relief measures by the company include a Rs 2 crore donation to the Andhra Pradesh Chief Minister’s Relief Fund, which was announced a few days ago.
Also see:
How coronavirus has hit the global auto industry: a timeline
How India's automakers have joined the fight against Coronavirus
New car, bike warranty extensions due to COVID-19 - A complete list