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Munjal vs Munjal: What is the legal tiff among ‘Hero’ promoters about?

Hero Electric has contended before the Delhi High Court that when the extended Munjal families decided to go their separate ways in 2010, the father-son duo of Vijay and Naveen Munjal were given the ownership of Hero Electric.

Hero shuts plants amid surge, first such action by big firmWith Hero Motocorp preparing for the launch of its own range of electric bikes and scooters, the company may want to continue using the Hero brand to avoid the large cost of building a brand name from scratch, along with the associated advertisement costs.

The promoters of Hero Electric have approached the Delhi High Court, seeking an injunction against Hero Motocorp using the ‘Hero’ brand name for the upcoming launch of the latter’s electric scooter, according to reports. The court is likely to hear the case on Wednesday.

What objection does Hero Electric have against Hero Motocorp using the brand name?

Hero Electric, which is among the largest electric scooter and bike makers in India, has contended before the Delhi High Court that when the extended Munjal families decided to go their separate ways in 2010, the father-son duo of Vijay and Naveen Munjal were given the ownership of Hero Electric, along with rights to use the Hero brand to sell electric vehicles in India and across the world.

With Hero Motocorp preparing for the launch of its own range of electric bikes and scooters, the company may want to continue using the Hero brand to avoid the large cost of building a brand name from scratch, along with the associated advertisement costs.

Apart from that, Hero Electric, which has built a wide range of electric products, would also want to protect its brand image and ensure that the same is not subsumed within the larger Hero brand.

What happens if the High Court rules in favour of Hero Electric?

Since Hero Electric has the right to sell electric vehicles in India and across the globe, it is most likely that Hero Motocorp will have to chose a different brand name for its upcoming electric scooter launch, if the court rules in favour of the former.

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While reports have indicated that the company has registered the brand name ‘Vida’ for use on its electric scooters and bikes, Hero Motocorp would like to try and retain the possibility of using the brand name ‘Hero’. Hero Motocorp sells petrol bikes and scooters under that brand name, and has established itself as one of the market leaders in the segment.

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