- Hero MotoCorp to pay its vendors
- Also pay interest on deferred payments
- Company had invoked force majeure class earlier
Hero MotoCorp has decided to make full payments to its suppliers and vendors starting next cycle.
The company had invoked force majeure clause in the wake of the Covid-19 lockdown. During this process, the company made only part payments to certain vendors. The top honcho of the company said they are taken steps as the extensions of lockdown is going to put liquidity pressure on them.
These developments were communicated to the 300 vendors by Pawan Munjal via a virtual town hall. The company said it would also pay interest on the deferred payments. It is also expecting an increase in demand for its vehicles post lockdown. Due to which he has asked the company’s vendors to undertake ramp up of operations.
The automotive industry is expected to resume its operations on 4 May, the day this extended lockdown comes to an end. But the government will take a final call depending on the COVID-19 spread. If everything is under control, then we can expect the government to discontinue the lockdown and let the companies start manufacturing and selling bikes and scooters.
