Atul Auto eyes larger share in three-wheeler market

Company to launch CNG Gem by Diwali, plans to step into the 0.35-tonne category, 4-wheeled LCVs on the radar.

With big plans in the offing, the Rajkot-based three-wheeler manufacturer Atul Auto is gearing up to take on leading companies in the sector such as Bajaj Auto and TVS Motor in the near future. Gradually building up its production capacity and expertise over years to make it to the national arena of the three-wheeler market, the company plans to roll out three-wheelers in the 0.35-tonne category with diesel as well as petrol engines. Currently, Bajaj Auto holds nearly 50 percent share in the 0.35-tonne three-wheeler market which is nearly 50 percent of the entire market including the 0.5-tonne and 0.75-tonne categories.

In the immediate future, the company plans to introduce the CNG-engined 0.5- tonne three-wheeler named ‘Atul Gem’ by Diwali, an extension to its current brand named Gem. Atul Auto currently sells 1,500 units of the Gem and 1,000 units of the 0.5 tonne ‘Shakti’, both deploying the same, 435cc, BS III-approved diesel engine sourced from Greaves Cotton. The gearboxes for all models under both these brands are made in-house at the Rajkot plant. Although company officials believe that the market for the front-engined Shakti model which is primarily sold in Gujarat and Rajasthan may be reaching saturation point, the Gem brand of rear-engined three-wheelers is turning the scale of business around in other states of Kerala, Uttar Pradesh, Chattisgarh, Haryana, J&K, Punjab and others. Sales of Gem models grew at a rate of 19 percent between April-August 2012 YoY.

Furthermore, the company’s R&D division is working on exploring the four-wheeled LCV segment for cargo as well as passenger applications in the longer run. However, new domestic markets and further penetration remains the priority for the company in the immediate future.

AMIT PANDAY