Trystan Casey
Hero Electric and Hero MotoCorp are two separate entities that have been involved in a legal battle over the use of the brand name Hero. Both companies are run by members of the same family, with the Munjal family being the largest shareholder in Hero MotoCorp as of 2024. Hero MotoCorp is an Indian multinational motorcycle and scooter manufacturer, while Hero Electric is a business segment under the umbrella of Hero EcoTech, led by Vijay Munjal and his son Naveen Munjal. The two companies have different business approaches and offerings, with Hero MotoCorp focusing on performance and premium features, while Hero Electric caters to the cost-effective and utilitarian segment of the market. The legal dispute between the two companies centres around the use of the Hero brand name for their electric vehicle offerings, with Hero Electric arguing that they have the legal rights to use the brand name for their electric vehicles.
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What You'll Learn
- Hero Motocorp and Hero Electric are legally battling over the use of the 'Hero' brand name
- Hero Motocorp is the world's largest two-wheeler manufacturer
- Hero Electric is a business segment under the umbrella of Hero EcoTech
- Hero Motocorp has invested heavily in the brand building of 'Hero'
- Hero Electric has monopolised a substantial portion of the market
Hero Motocorp and Hero Electric are legally battling over the use of the 'Hero' brand name
Hero Motocorp and Hero Electric are legally battling over the use of the Hero brand name. The former is an Indian multinational motorcycle and scooter manufacturer, while the latter is a business segment under the umbrella of Hero EcoTech, led by Vijay Munjal and his son Naveen Munjal. Despite having no association with each other, the launch of Hero MotoCorp's first electric scooter, Vida V1, caused confusion among consumers who associated it with Hero Electric.
Hero Electric has taken legal action against Hero MotoCorp, claiming exclusive rights to the Hero brand name for electric vehicles. They argue that their 15 years in the EV business grants them this exclusivity. However, Hero MotoCorp has not publicly indicated any plans to use the Hero name for its electric two-wheelers. The dispute has landed two sections of the Munjal family in a legal battle, as Vijay and Naveen Munjal are cousins of Pawan Munjal, the CMD of Hero MotoCorp.
Hero MotoCorp has responded by stating that they are operating within the parameters of a family understanding and agreement. They assert that their actions are guided by this agreement, and they are confident in their legal position. The company has partnered with Taiwan-based Gogoro to manufacture its electric two-wheelers and has invested in Ather Energy, a start-up company manufacturing electric scooters.
Hero Electric initially sought an injunction against Hero MotoCorp's use of the Hero brand for electric vehicles. However, they later withdrew their petition, and an arbitral tribunal was formed by the Delhi High Court to resolve the dispute. The tribunal includes retired judges Indu Malhotra, Deepak Mishra, and Indermeet Kaur. While Hero MotoCorp continues to maintain its rights to the brand, the outcome of the legal battle remains uncertain as the matter is sub-judice.
The battle over the Hero brand name reflects the growing interest in electric vehicles and the shift towards an all-electric ecosystem. With Hero MotoCorp's entry into the EV segment, the use of the Hero name has become a contentious issue, and the legal battle between the two companies will determine the rights to brand usage in the electric vehicle space.
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Hero Motocorp is the world's largest two-wheeler manufacturer
Hero MotoCorp is an Indian multinational motorcycle and scooter manufacturer, with its headquarters in Delhi. It has a market share of about 30% in the Indian two-wheeler industry, making it the largest two-wheeler manufacturer in the world. The company has five manufacturing facilities in India, located in Dharuhera, Gurugram, Neemrana, Haridwar, and Halol. A sixth manufacturing facility is currently being constructed in Chittoor, Andhra Pradesh, spanning 600 acres and requiring an investment of 1600 crores. These plants collectively produce over 7.6 million two-wheelers annually.
Hero MotoCorp was established in 1984 as a joint venture between Hero Cycles of India and Honda of Japan, under the name Hero Honda Motors Limited. The company introduced low-cost motorcycles to the Indian market and gained recognition for its advertising campaign, "Fill it – Shut it – Forget it", emphasising fuel efficiency. In 2011, the company changed its name to Hero MotoCorp Limited and unveiled its new brand identity and logo.
Over the years, Hero MotoCorp has expanded its operations and made strategic investments. In 2016, the company acquired a significant stake in Ather Energy, a start-up manufacturing electric scooters, and has also partnered with Taiwan-based Gogoro for the production of electric two-wheelers. The company launched its first electric scooter, the Vida V1, under its subsidiary brand Vida. However, this scooter was often confused with the products of Hero Electric, a separate company under the umbrella of Hero EcoTech. Despite the similarity in names, Hero MotoCorp and Hero Electric have no association, and they differ significantly in their business approaches and product offerings.
Hero MotoCorp has a strong presence in sports sponsorships, having sponsored various golf, football, and hockey events globally. The company has also faced challenges, including legal disputes over branding and raids by the Income Tax Department in 2022 due to alleged bogus expense claims. Nonetheless, Hero MotoCorp remains a prominent player in the two-wheeler industry, continuing to innovate and provide mobility solutions worldwide.
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Hero Electric is a business segment under the umbrella of Hero EcoTech
Hero Electric and Hero MotoCorp are two separate entities with no association between them. Hero Electric is a business segment under the umbrella of Hero EcoTech, led by Vijay Munjal and his son Naveen Munjal. They are pioneers in the electric two-wheeler industry in India, offering a range of cost-effective and utilitarian electric scooters known for their low maintenance. On the other hand, Hero MotoCorp is an Indian multinational motorcycle and scooter manufacturer, currently the largest two-wheeler manufacturer in the world. It is headquartered in Delhi and has a market share of about 30% in the Indian two-wheeler industry.
The two companies have been involved in a legal battle over the use of the brand name "Hero". Hero MotoCorp, owned by the Brijmohan Lall Munjal family, has the backing of private equity firms and has invested significantly in the electric vehicle space and brand building. They have defended their rights to use the "Hero" brand for their upcoming electric two-wheelers, arguing that the shift to electric is beyond their control and is linked to managing climate change.
Hero Electric, on the other hand, has contended that when the extended Munjal families separated in 2010, Vijay and Naveen Munjal were given ownership of Hero Electric and the rights to use the "Hero" brand for electric vehicles in India and globally. They have threatened legal action to defend these rights, citing the spirit and wording of the agreement. The case is currently sub-judice, and both parties have refused to comment further.
The fight over the "Hero" brand is intensified by the fact that both companies are run by members of the same family and have similar names due to their shared history. The outcome of the legal battle remains uncertain, with industry watchers predicting either continued conflict or an amicable settlement allowing both brands to coexist.
It is worth noting that despite the similarities in branding, Hero Electric and Hero MotoCorp have distinct business approaches and offerings. Hero Electric focuses on affordable pricing and has monopolised a substantial portion of the market, ranking third in sales during the first half of the fiscal year 2022-2023. In contrast, Hero MotoCorp's electric scooter, the Vida V1, offers superior features and performance but at a higher price point.
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Hero Motocorp has invested heavily in the brand building of 'Hero'
Hero Motocorp and Hero Electric are two separate entities with no association between them. However, both use the "Hero" branding and are linked by the Hero family name. While Hero Motocorp is the world's largest two-wheeler manufacturer, Hero Electric is a pioneer in the electric two-wheeler industry in India. The latter falls under the umbrella of Hero EcoTech, led by Vijay Munjal and his son Naveen Munjal.
Hero Motocorp, previously known as Hero Honda Motors Limited, has indeed invested significantly in brand building. The company changed its name to Hero MotoCorp Limited in 2011 and unveiled a new brand identity and logo designed by the British firm Wolff Olins. The rebranding strategy was carefully timed to coincide with a cricket match between England and India in London, leveraging a significant sporting event to gain visibility for the new brand image.
Hero Motocorp has also actively pursued sponsorships and partnerships to build its brand. They have sponsored various golf tournaments, including the Hero World Challenge and golf events on the European Tour, such as the English Open (Hero Open) and the Betfred British Masters. Additionally, Hero Motocorp has been involved in football sponsorships, partnering with Atlético Madrid and sponsoring Indian football leagues and national team kits. These sponsorships help elevate the brand's visibility and establish associations with popular sports.
The company has also expanded its manufacturing capabilities and invested in research and development. Hero Motocorp has multiple manufacturing facilities across India, with plans to establish additional plants, such as the greenfield facility in Chittoor, Andhra Pradesh, demonstrating their commitment to expansion. Furthermore, they have joint ventures or associate companies that supply a significant portion of their components, ensuring a consistent supply chain.
In terms of product innovation, Hero Motocorp launched its first electric scooter, the Vida V1, and subsequently introduced the Vida V2. These electric scooters are manufactured under the subsidiary brand Vida, showcasing the company's diversification into the electric vehicle market. Additionally, Hero Motocorp has partnered with Taiwan-based Gogoro for the manufacture of its electric two-wheelers, further reinforcing their investment in brand building within the electric mobility space.
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Hero Electric has monopolised a substantial portion of the market
Hero Electric and Hero MotoCorp are separate entities with no association between them. Hero Electric is a business segment under the umbrella of Hero EcoTech, led by Vijay Munjal and his son Naveen Munjal. On the other hand, Hero MotoCorp Limited is an Indian multinational motorcycle and scooter manufacturer headquartered in Delhi. While both companies use the "Hero" branding, they have distinct approaches to their businesses.
Despite facing competition from rivals like Okinawa, Ola Electric, and other domestic manufacturers, Hero Electric has steadily grown its dealer and customer network in India. The company has focused on providing cost-effective and utilitarian electric scooters with low maintenance requirements and speeds ranging from 25 to 45 kmph. This strategy has allowed Hero Electric to monopolise a substantial portion of the market. In the first half of the fiscal year 2022-2023 (April-September 2022), Hero Electric ranked third in terms of sales.
Hero Electric's success can be attributed to its affordable pricing, which has boosted sales and given it a first-mover advantage in the electric two-wheeler segment. The company sold 96,906 electric two-wheelers in the calendar year 2022, capturing a 15.75% market share in the category.
However, it is important to note that Hero MotoCorp is currently the world's largest two-wheeler manufacturer, although it has not entered the electric vehicle (EV) space. With the shift towards electrification, Hero MotoCorp has partnered with Taiwan-based Gogoro to manufacture electric two-wheelers and has also invested in Ather Energy, a startup manufacturing electric scooters.
The two companies have been involved in a legal dispute over the use of the "Hero" brand for their respective electric two-wheeler offerings. While Hero Electric has the legal rights to use the brand for its electric vehicles, the dramatic shift towards electrification may warrant a review of the earlier agreement.
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Frequently asked questions
No, they are separate companies with no association with each other. However, they are both run by members of the same family.
The two companies have been involved in legal battles over the use of the brand name "Hero". Hero Electric has contended that it has the rights to use the brand name for its electric vehicles, while Hero MotoCorp has indicated plans to use the same brand name for its electric two-wheelers.
While the initial order was passed in favour of Hero MotoCorp, the battle is ongoing as of 2022. There may be an amicable settlement between the two companies, allowing both brands to coexist.
Hero MotoCorp is the world's largest two-wheeler manufacturer, while Hero Electric is a pioneer in the electric two-wheeler industry in India. Hero Electric's products are known for their affordable pricing and low maintenance, while Hero MotoCorp's Vida V1 electric scooter offers better features, performance, and battery life.
