Hero Electric, India's leading electric two-wheeler manufacturer, has reportedly withdrawn its petition seeking an injunction against Hero MotoCorp, India's largest two-wheeler manufacturer, for using the 'Hero' brand for electric vehicles (EVs). According to reports, an arbitral tribunal has been formed by the Delhi High Court to resolve the dispute between Hero MotoCorp and Hero Electric. The issue is over Hero MotoCorp planning to also use the Hero brand name for its upcoming EV range. Naveen Munjal, son of Vijay Munjal, who heads Hero Electric, has been engaged in a legal battle with his uncle Dr. Pawan Munjal, Chairman of Hero MotoCorp, saying his family has exclusive rights to use the 'Hero' brand for EV products.
Also Read: Hero Electric Moves Court To Claim Hero Brand For EVs
Dr. Pawan Munjal with an advanced prototype of Hero MotoCorp's upcoming electric scooter. The new EV is expected to be launched in March 2022.
According to a news report, Hero MotoCorp's lawyers, who appeared in front of the court-appointed arbitration tribunal, has confirmed that there is no restriction on the company to use the brand 'Hero' with regards to its upcoming electric vehicle range since Hero Electric has withdrawn its application for interim relief. Hero MotoCorp is the market leader in internal combustion engine two-wheelers, and is getting ready to launch its first electric vehicle next month. The company has also formed a joint venture with Taiwan-based Gogoro Inc., owner of the world's largest battery swapping network. Hero MotoCorp is also one of the earliest investors in Bengaluru-based EV manufacturer Ather Energy.
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Hero MotoCorp has trademarked a number of titles under the Vida name that includes mobility, scooters, motorcycles, EV and more
carandbike has reached out to both Hero Electric and Hero MotoCorp, but both the companies are yet to officially confirm the development or make any kind of statement. According to an unnamed Hero MotoCorp spokesperson quoted in the report, the company has said that everything is being done within the parameters of the understanding and a 2010 family agreement between different factions of the Munjal family. According to a statement from Hero Electric, the company is contesting Hero MotoCorp's moves to oppose arbitration to resolve the issue over the use of the "Hero" brand.
Also Read: Hero Electric Rolls Out First Electric Scooter From Mahindra's Pithampur Facility
Hero Electric currently has over 36 per cent market share.
Under a family agreement in 2010, which simplified the Hero businesses, Pawan Munjal, who was given Hero MotoCorp, is barred from using the 'Hero' brand name for any electric two-, three-, or four-wheelers. Under that agreement, the global rights for Hero Electric are with Pawan Munjal's cousin, Vijay Munjal, and his son Naveen Munjal. Hero Electric owns 36 per cent market share in the Indian electric two-wheeler segment and sold over 65,000 electric two-wheelers in 2021. The understanding is that Hero Electric owns all rights to EVs with the Hero brand, and as such, Hero MotoCorp will not be able to use the 'Hero' brand name for any EV business.
Also Read: Hero Electric Becomes Highest-Selling EV Brand In India
The 2010 agreement among the Munjal family was accepted amicably by all factions. Under that agreement, Brijmohan Lal Munjal's family got control of flagship firm Hero MotoCorp and Hero Corporate Services, among others. Om Prakash Munjal's son Pankaj Munjal is currently the chairman of Hero Cycles. His family got control of Hero Cycles, Hero Motors and Munjal Sales Corporation. Satyanand Munjal's family controls Munjal Showa, Munjal Auto and other related businesses, while Dayanand Munjal (represented by his son Vijay Munjal) is the owner of Hero Exports, Hero Electric and Sunbeam Auto. Vijay Munjal's son Naveen Munjal is the managing director of Hero Electric.
(Source: The Economic Times)
