Hero’s upcoming electric vehicles are becoming a controversial topic even before their arrival. Who will budge is the question now…?
This has always been a point of contention! It is known that under the family pact that was signed in 2010 by the Munjals that ‘Hero’ branding can be used only by Hero Electric.
Though the pact allows members to venture into all the realms, however, it is the brand usage that is very clearly defined. Hero Electric is one strong name in the electric two-wheeler industry and Hero MotoCorp will definitely get an undue advantage if it is allowed to use the ‘Hero’ branding.
In an interaction, Naveen Munjal, Managing Director of Hero Electric, cleared that…
…there is a very clear agreement within the family which happened when we did the restructuring in 2010 on how the brands are going to be used. There was no non-compete (clause) as far as product segments are concerned, which means anybody could get into any segment but there exists a very strong non-compete clause for brand usage.
He added that environmental products, green vehicles and electric vehicles are with his company and he will not allow ‘others’ to venture into (with ‘Hero’ branding is what we assume).
Hero MotoCorp has cleared that it will launch its electric vehicles by next year. It has two verticals – one which it has fused with Taiwan’s Gogoro and the other under which it is developing its own products.
India’s biggest 2-wheeler maker has announced that it will launch its 2-wheelers under the ‘Hero’ branding and that has caused a lot of flutter in the market. Naveen accepted that it was a surprise for him and he cleared that he will block Hero MotoCorp to use the ‘Hero’ branding on its upcoming electric vehicles.
As we inch closer to Hero MotoCorp’s products, things may get heated up and Naveen has cleared that there are no back-channel talks within the family on this matter!
It will be interesting to see how things move ahead but it appears that Naveen Munjal is in no mood to give up his right whereas the ‘Hero’ branding is extremely important for the country’s largest 2-wheeler maker to get the much needed initial traction.
Source – Moneycontrol