Takes Mahindra Renault to court over car’s name
Hyundai Motor India has taken Mahindra Renault to the Delhi High Court, objecting to the latter's plan to launch a compact car in the country with the name ‘Sandero’, alleging the rival was trying to cash in on its popular Santro brand with a similar sounding product.
“They (Mahindra Renault) are planning to launch Sandero, which is very similar sounding to our Santro. Both are hatchbacks and Santro is an established trademark and they are trying to get mileage out of it,” a senior Hyundai Motor India (HMIL) official said. HMIL's plea requests the court not to allow Mahindra Renault to launch the car under the name Sandero, he added.
In a press release, Mahindra Renault CEO Nalin Mehta said, “We have filed a reply requesting the honourable court for removal of Mahindra Renault’s name as the defendant. Mahindra Renault does not have any ownership of the Sandero brand. Mahindra Renault has never used or promoted the brand. The Sandero brand belongs to Renault and we have no locus standi on the brand. Our appeal with request stated above is filed with the court and awaits hearing.”
‘Santro’ is HMIL's flagship brand and a total of over 1.5 million units have been sold both in the domestic and the overseas markets since its launch in September 1998.
On the other hand, Mahindra Renault has been struggling to mark its presence in the Indian car market with its sole product, Logan, failing, sparking speculation of a break-up of the joint venture between Mahindra & Mahindra and French auto major Renault.
Market analysts pointed out that the firm desperately needs another product to keep the JV alive.
The Logan sold only 510 units in September compared to 1,752 units in the same month last year. In the first six months of this year, the JV sold 2,901 units compared to 9,217 units in the same period last year.
Last week Renault President and CEO Carlos Ghosn had said falling sales of the Logan was a matter of concern and hinted that all was not well in its relationship with M&M and the ties could even be broken.
“I am not saying we will, I am saying we can. I don't want anybody to be surprised. We have today three partners (in India). Our intention is to continue with the three partners, but if it is not possible, I can tell you that we need at least one,” Ghosn had said at the Tokyo Motor Show.
Renault has other alliances with Bajaj Auto for a small car project and Ashok Leyland through Nissan for light commercial vehicles in India.
He had stated if things didn't work out Renault could eventually bring its future product with a new partner.
“It is a matter of concern, every time your sales go down on any model not only in India, we always check why ... We are going to try sometime, if it does not work we will go for a second time with a decent car and eventually with a different partner, does not matter. We are in India to stay,” Ghosn had said.
