The Delhi High Court has referred the dispute between two factions of the Munjal family, led by cousins Vijay Kumar Munjal and Pawan Kumar Munjal, for arbitration. The matter relates to the use of the ‘Hero’ brand name for electric vehicles by Hero MotoCorp, led by Pawan Munjal. Vijay Kumar Munjal, and his son Naveen Munjal, who own Hero Electric, have opposed to the use of the ‘Hero’ brand by Hero MotoCorp for its EV business. According to Hero Electric, Hero MotoCorp had opposed the petition to refer the disputes to arbitration.
Hero Electric is India’s leading electric two-wheeler manufacturer, and contests Hero MotoCorp’s plans to use the Hero brand for its EV business. Hero Electric says it’s against the terms of a family agreement which split different branches of the Hero Group’s business across four brothers.
“A petition was filed by Hero Electric to refer the disputes to arbitration which was strongly opposed by Hero MotoCorp. The Court, while rejecting all contentions of Hero MotoCorp, has referred all the disputes under the family arrangement to a three-member arbitral tribunal. Given the reference of all disputes between the parties, we will be making a prayer for interim injunction against Hero MotoCorp before the duly constituted tribunal. Needless to add that we will also take all possible steps to thwart any challenge to the order of reference of the disputes to arbitration,” Hero Electric said in a statement.
Naveen Munjal – Managing Director, Hero Electric, is contesting his uncle, Hero MotoCorp’s Pawan Munjal’s plans to use the “Hero” brand for its upcoming EV range.
Vijay Munjal, along with son Naveen Munjal had approached the court in October seeking arbitration, claiming ownership over the use of the ‘Hero’ brand for the electric vehicle business. The issue is over the terms of a family settlement in 2010 when the Munjals decided to go their separate ways, with each faction of the family receiving ownership of businesses they managed. The group was divided among the brothers, including the late Brij Mohan Munjal, father of Pawan Munjal; the late Dayanand Munjal, father of Vijay Munjal; OP Munjal, who son Pankaj Munjal is now managing director of Hero Cycles; and Satyanand Munjal, whose sons inherited Munjal Showa, Munjal Auto, Majestic Auto and Satyam Autotech.
Under that agreement, 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.
Highlights
- The matter is over the use of the ‘Hero’ brand for EVs
- Hero Electric claims exclusive use of the brand name for EVs
- Hero MotoCorp is getting ready to launch its first EV
Keyword: Hero Electric Hardens Stand On Brand Dispute With Hero MotoCorp