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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 HMIL official told PTI.
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.
Mahindra Renault clarifies
Meanwhile, Nalin Mehta, CEO, Mahindra Renault, has issued a statement saying: "We have filed a reply requesting the honorable court for removal of Mahindra Renault's name as the defendant. Mahindra Renault does not have any ownership of the Sandero brand. MRPL has never used or promoted the brand."
"The Sandero brand belongs to Renault and we (Mahindra Renault) have no locus standi on the brand. Our appeal with request stated above is filed with the court and awaits hearing."