New Delhi: 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 that the rival was trying to cash in
on its popular brand Santro 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 told agency.
HMIL's plea requests the court not to allow Mahindra
Renault to launch the car under the name Sandero, he added.
Neither a call made to Mahindra Renault Chief Executive
Officer Nalin Mehta nor an e-mail sent to Mahindra & Mahindra
group spokesperson seeking comments on the development got a
reply.
'Santro' is HMIL's flagship brand and a total of over 15
lakh 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 miserably sparking speculations 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 fiscal, 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
that 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.
Bureau Report
First Published: Tuesday, October 27, 2009, 14:44