Atul Auto Expects Strong Growth In ICE Three-Wheeler Driven By Exports, Rising Domestic Demand

Atul Auto Ltd. anticipates better growth in the coming months due to export demand, repeat orders and domestic market strength, particularly in the Internal Combustion Engine (ICE) three-wheeler business, according to the company’s President of Finance, Jitendra V Adhia.

When asked if the ICE three-wheeler business can replicate the strong FY25 performance, Adhia said, “I expect better than that. We have some repeat orders from the export market. In the first four months, we did really good numbers. Apart from that, in a domestic market where EVs are not yet that popular, I believe that ICE vehicles will have their own way. So, putting all together, I expect a little better growth than the current growth rate this fiscal as well as in the coming fiscal.”

Atul Auto's ICE three-wheeler business has seen stable growth, with sales rising 12–13% so far this year.

In the ICE three-wheeler segment, the company registered sales of 22,188 units in FY25, compared to 16,439 units in FY24, marking a 35% rise year-on-year. The company reported total sales of 34,012 units in FY25, compared to 26,039 units in the preceding financial year.

The company is also shifting focus from L3 to L5 (more stable) vehicles. L3 growth will be minimal and operations in this category are now limited to select geographies, he explained.

“There will be kind of very nominal growth in terms of absolute numbers for L3 category but yes, we would be more focusing on L5 category and we have introduced this L5 category vehicle at a limited pockets or limited geography, which we expect that in H2 we will be expanding once we have a stable you know overall sales volume,” he said in a conversation with NDTV Profit on Wednesday.

Adhia noted that while L5 profitability is currently lower, margins should improve with a drop in component costs and an increase in localisation.

“Margin profile for any type of vehicle remains almost the same. The L5 category obviously is not that profitable… sale prices are now stabilising and a few electronic components… going forward will be available in India itself. I expect this will definitely help us to improve upon our margins as well,” he said.

For Atul Auto, the export markets are a growing focus. The company is present in Africa, Latin America and has recently entered Sri Lanka.

“I believe that now we are available in African countries as well as in Latin America. Recently, we appointed a distributor in Sri Lanka as well. So, we are going to be present in the majority of the markets where the three-wheeler is getting sold…..The product has been well accepted here in the domestic market as well as in the overseas market. So going forward, I believe that we will definitely have a better volume,” he added.