A settlement in 2010 between the members of the Munjal family had seen various businesses under the ‘Hero’ brand name being allocated to Pawan Munjal, Vijay Munjal, Sunil Munjal and Pankaj Munjal.
Hero MotoCorp will not be able to use the “Hero” brand name for any type of electric vehicle. This is because the name has been allotted to Hero Electric. Naveen Munjal – the nephew of Pawan Munjal, the Chairman, MD and CEO of Hero MotoCorp, runs the company.
Hero Electic has been in the electric two-wheeler business since 2007. A settlement in 2010 between the members of the Munjal family had seen various businesses under the ‘Hero’ brand name being allocated to Pawan Munjal, Vijay Munjal, Sunil Munjal and Pankaj Munjal. These businesses include two-wheelers, cycles, insurance, realty, electric vehicles, components and education.
Due to this settlement, Hero MotoCorp is now prohibited from using the ‘Hero’ brand name for two-wheelers, three-wheelers or four-wheelers for personal-consumer use, or the commercial market. Naveen Munjal has stated that any violation will lead to legal action. While other members of the family are not prohibited from starting competing businesses, they will have to use different names.
With competition in the electric two-wheeler market heating up, this is a setback for Hero MotoCorp as Hero is trusted name in the two-wheeler industry. The company plans to introduce its first electric vehicle in this fiscal, but will need to launch it under a new brand name. Hero MotoCorp has also invested in Ather Energy.
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