The dealers claim that Hero Electric has not paid them in the past two years due to which outstanding payments have escalated to around Rs 500 crores
There is an ongoing battle between Hero Electric and the company dealers. The dealers complain that even as more than Rs 150 crores have been paid to the company in advance for supply of electric scooters, the company claims otherwise, ‘jo karna hai kar lijiye’ (you are free to take any recourse). In 2021, Hero Electric had stated that they aim to sell 10 lakh electric scooters / EVs per year.
Hero Electric Dealers Protest at Gurugram HQ
Over 200 Hero Electric dealers have been protesting outside the Hero Electric headquarters in Gurugram, seeking dues that run into hundreds of crores. In the past year alone, the dealers have deposited over Rs 150 crores into the accounts of Hero Electric. This amount was taken in advance for the supply of the company’s range of electric scooters, however, neither were deliveries made nor were warranty for spare parts provided.
Hero Electric dealers protesting at company HQ pic.twitter.com/jfoL3B3TTP
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A letter written by the dealers to the Prime Minister seeks his intervention into their grievances. The pending payment currently amounts to Rs 500 crores while at the same time leaving around 50,000 customers in dire straits due to the warranty of spares issue not being sorted out.
Hero Electric Dealers Angry
This disparity between the management and its dealerships have left many dealers at their wits end. Some have even attempted suicide. They are left facing the issue of depleting sales due to no batteries and chargers being supplied which are under warranty. Subsidies to be passed on to end-customers as per the FAME-II policy has also not been reimbursed till date. The dealers also have to face angry customers who have been attacking dealers due to no servicing being offered on their vehicles.
Hero Electric dealers protest – Says company holding Rs 500 crores
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Nishant Bansal, a Delhi-based dealer and the President of World Federation of ZE EV and Welfare Association has stated that dealers have been left with huge debts. They now seek immediate compensation and reimbursement from the company and the assurance that outstanding warranty and supply of spare parts will be addressed on a war footing. This issue has affected over 50,000 electric vehicles from Hero Electric, leaving scores of customers dissatisfied and angry.
A point to be noted is that Delhi High Court along with Punjab and Haryana High Court have also admitted petitions by Hero Electric disputing actions of the Ministry of Heavy Industries and sought recovery of pending subsidies to the tune of over Rs 550 crore since 2021.
Hero Electric Management Denies Allegations
In response to the above contention from company dealers, Hero Electric held a meeting with the dealers at the company headquarters in Gurugram, but refused to pay even a part of the outstanding dues, according to Bansal. He also stated that when urged to pay at least a part of the dues, the management refused, stating ‘jo karna hai kar lijiye’ (you are free to take any recourse). The company claimed that these claims of Rs 500 crore pending amounts is false and mischievous.
A spokesperson at Hero Electric stated “Dealers have separate agreements with the company, based on their sales estimates. Production shutdown for the last nine months has caused delays; however, the company has already started production, and dispatch of vehicles has already commenced with a commitment to the dealers to resolve open issues by December 2024”.
Source: Bike - rushlane.com
