Indicating the onset of a fierce battle in the domestic car market, auto leader Maruti Udyog on Friday demanded an apology from competitor Hyundai for engaging in "false, misleading and deceptive" campaign against its new product 'Swift' or face the consequences.
"We have asked them to apologise and withdraw the campaign," Jagdish Khattar MUL managing director said while taking strong exception to Hyundai's advertising brochure called "Xing ahead of the Swift".
When contacted, a Hundai spokesperson said "our legal department is looking into the legal notice sent by Maruti on Thursday. We will reply to them."
Asked about the course of action in case Hyundai sticks to its ground, Khattar said that "we have informed them that we will take necessary action."
Close on the heels of launch of 'Swift', Hyundai announced a price cut of up to Rs 22,000 in some of its Santro models coinciding with the release of new brochure comparing its recent version of Santro -- Xing with MUL's latest launch.
Reacting to the campaign, MUL demanded a public clarification from Hyundai and asked for a "written undertaking within seven days of receipt of the notice that it will henceforth not disparage their (MUL's) products in any manner whatsoever."
In it's legal notice sent through solicitor firm Amarchand Mangaldas, MUL warned against failure of compliance saying in such eventuality it would take appropriate steps to protect its rights.
After launch of 'Swift ' on May 25 with an introductory base price of Rs 3.87 lakh, MUL hiked the price by Rs 8,000 for all the bookings after June 8.
The solicitor firm said in its notice that "Hyundai's advertisement is false, misleading and deceptive and falsely represents that 'Swift' is not a good car. Hyundai has, therefore, disparaged the goods of MUL and has committed unfair and restrictive trade practices against MUL and is accordingly liable in law for this."
Stating that the comparison between 'Xing' and 'Swift' projected by Hyundai was not based on objective, relevant or verifiable material, the notice said "this is nothing but an attempt to discredit MUL's product and to portray it in a derogatory manner by stating that Swift is a product of low value or merit."
In its brochure, Hyundai claimed superiority of 'Xing' over 'Swift' on ten counts saying its product was ahead in terms of space, convenience and global technology and sought to make a case that MUL's Indian product was inferior to the same product launched in European market by the parent company Suzuki Motor Corporation.