Atul Auto Targets To Achieve Pre-Covid Sales In FY26

Three-wheeler manufacturer Atul Auto is set to cross its pre-Covid sales levels in financial year 2025-26 and expand its annual production to over one lakh vehicles in the next three to five years, according to V Adhia, the company's president - finance.

“We concluded FY25 with more than 30% growth, and it has come from all three segments: conventional fuel, EV (electric vehicle), and alternate fuel. EV contributes approximately 25% of our entire sales, and I expect that this will continue growing. Unfortunately, this year we could not surpass pre-Covid level sales. But the first benchmark we would be doing is to cross the pre-Covid sales for all categories," Adhia told NDTV Profit.

In terms of production, "we would like to grow beyond 100,000 vehicles in the mid-term, that is anywhere between three to five years," he added.

Atul Auto offers both L3 and L5 categories of EVs. The L3 category comprises the e-rickshaw business, while L5 refers to larger three-wheeler EVs for cargo and passenger transport. 

“As far as L3-L5 comparison is concerned, I expect more numbers from the L5 category because that vehicle is getting settled into the market. We have partially overcome a few challenges about retail finance availability, and I expect that next year it will be further smoother. As far as export is concerned, we have some inquiries for EVs from across the border as well,” he said.

Adhia expects the share of EV sales to increase from 25% currently to 30% to 40% in this financial year, reinforcing the company's commitment to the segment. “EV is going to be the next thing for Atul Auto apart from alternate fuel and diesel vehicles,” he said.

“If you look at ICE (internal combustion engines) versus EV, ICE is close to 75% of my sales for the last fiscal, 25% is EV. I believe that from 25%, the share of EVs may move to anywhere between 30% to 40%, and with good volume growth in ICE, we will be able to touch pre-Covid levels very soon,” he added.

The L5 category faces competition from domestic players well-established in the three-wheeler market, while the L3 category is seeing competition from lower-priced imports.  “But we would not like to compete with the Chinese or their quality parameters,” he noted.

Atul Auto remains focused on maintaining its quality standards, he added.

For the L5 category, Atul Auto provides both fixed and swappable battery options, with the fixed battery manufactured in-house and the swappable battery developed through a tie-up with Honda.

Shares of Atul Auto ended Friday's session 2.31% lower at Rs 487 apiece on the NSE. In contrast, the benchmark Nifty 50 closed 1.49% lower.