Tension is being brewed in the family of Munjal with Naveen and Pawan to confrontation of the use of the Hero brand for electric vehicles.
Naveen Munjal, Managing Director of the Electric Heroes, said he was ready to fight uncle Pawan Munjal-LED Hero Motocorp if he entered the electric two-wheeled room under his brand. The two companies are market leaders in each segment.
The MOTOCORP hero, the largest producer of two-wheeled vehicles in India is preparing the entry into the electric two-wheeled room at FY22. Electric hero, who is a market leader in the two-wheeled electricity segment (E2W) is ready to block the entry of the Motocorp hero.
Speaking with MoneyControl Naveen Munjal, the implementing director, the Electric Hero said, “We are not worried about the account at all because there is a very clear agreement in the family that occurred when we restructured in 2010 about how the brand would be used. No one does not compete (clause) As far as the product segment, which means that there can be anything that can enter any segment but there is a very strong non-competing clause for brand use. “
In April, the Motocorp hero handed hand in hand with Gogoro Taiwan to develop a hero branded electric vehicle (EV) for the Indian market. In addition, Hero Motocorp has worked independently at EVS at its R & D facility. The first MOTOCORP EVS hero was set for sale before March 2022 under the ‘brand hero’.
“Environmental products, green vehicles and electric vehicles; they remain with us. If anyone explores, we must take our necessary steps, whatever is available to us by law. We are very clear not just the spirit of the agreement but even said The agreement said. There is no ambiguity on it, “added Munjal.
Even though Poer Motocorp Pawan Munjal refused to provide details of its product strategy for the future, he would act on legal advice available for it.
“There is a family understanding, which everyone in the Munjal family is very conscious, and everything will be done in the parameters of understanding and agreement. It remains a role model for the family agreement. The Motocorp hero is very aware of his rights and as usual, will continue to act on the best legal advice. We never comment on speculation from one of our business strategies or products that we can launch in the future, “said a spokesman for the Motocorp Heroes in an email response.
The Electric hero, which has a market share of around 42 percent, has around 13 products in his portfolio, making it the widest product portfolio between E2W companies. Delhi-based companies have been in investment in RS 700 Crore for 3-4 years clean to increase its manufacturing capacity to more than 1 million units per year from 75,000 units per year today.
“It surprised us when Hero Motocorp announced his plan to come out with a two-wheeled electric wheel under the brand of the hero. We will take all the steps needed for us at that time it must be something like that happens. There is no change in channels in the family in this case, “Add Naveen Munjal.