The ‘Hero’ trademark can be used by Hero MotoCorp Ltd for selling its Electric Vehicles, the Arbitration Tribunal said on Thursday. Hero Electric had sought an injunction against Hero MotoCorp using the trademark 'Hero' for its electric vehicles.
Shares of Hero MotoCorp rose about 1 percent on Friday after the Pawan Munjal-led two-wheeler major was given permission on Thursday by an arbitration panel appointed by the Delhi High Court to manufacture and sell electric vehicles under the trademark "Hero". However, they slipped into the negative territory soon.
At 9:40 am, shares of Hero MotoCorp were trading flat at Rs 2,720 on the BSE.
The tribunal was appointed to resolve the dispute between two factions of the Munjal family group. It dismissed the application filed by Hero Electric for an interim injunction against Hero MotoCorp for using the brand ‘Hero’ for its electric vehicles.
“The Arbitration Tribunal has found the case of Hero Electric unmerited in the interim. The Tribunal would now conclude the matter after final consideration of the case,” the two-wheeler major said in an exchange filing.
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The company further added that the Arbitration Tribunal emphasised on the investments to the tune of Rs 400 crore made by Hero MotoCorp Ltd on the business of Electric Vehicles and expenses of almost Rs 7,000 crore on brand building of ‘Hero’ in the past 10 years.
CNBC-TV18 had reached out to Hero Electric for a comment on this story, but the company declined to comment.
This comes at a time when Hero MotoCorp is preparing to launch Electric Vehicles under ‘Vida’ brand.
The launch of the company's first electric scooter which was supposed to happen in July, has been postponed till the festive season.
The country's largest two-wheeler maker deferred the launch of its first electric two-wheeler on account of supply constraints amid geopolitical tensions.
Hero MotoCorp’s Executive Director Vikram Kasbekar blamed geopolitical tensions for supply shortages of various parts including semiconductors. He said, "The ongoing geopolitical situation has resulted in enormous supply chain issues and shortage of various components, including semiconductors."
"Keeping customers as the top-most priority, we, therefore, feel it would be prudent to unveil the first EV product around the upcoming festive period instead of July as earlier announced," Kasbekar said earlier in June.
First Published: IST