EV-L3 segment crashes 31% while company struggles with broader electric vehicle adoption challenges
01 Sep 2025 | 14563 Views | By Shristi Ohri
Atul Auto Limited's electric vehicle segment faced another challenging month in August 2025, with EV-L3 sales plummeting 31.14% to just 575 units compared to 835 units in August 2024, highlighting the sustained difficulties plaguing India's electric three-wheeler market.
The electric vehicle decline has ...
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Atul Auto Limited's electric vehicle segment faced another challenging month in August 2025, with EV-L3 sales plummeting 31.14% to just 575 units compared to 835 units in August 2024, highlighting the sustained difficulties plaguing India's electric three-wheeler market.
The electric vehicle decline has become a defining characteristic of Atul Auto's recent performance, with the EV-L3 category suffering consistent double-digit drops throughout the fiscal year. August's 31% decline represents one of the steepest monthly falls, bringing year-to-date EV-L3 sales down 21.48% to 2,431 units compared to 3,096 units in the previous fiscal.
The L3 and L5 designations refer to different vehicle categories under India's motor vehicle regulations. L3 vehicles are three-wheelers with an engine capacity not exceeding 50cc (for petrol) or equivalent power for electric variants, typically including passenger auto-rickshaws and light commercial three-wheelers with lower payload capacity. These are the most common three-wheelers seen on Indian roads for last-mile passenger transport and small goods delivery.
In contrast, L5 vehicles represent a higher category of three-wheelers with greater engine capacity or power output, typically used for heavier commercial applications such as goods transportation and cargo delivery. L5 vehicles generally have higher payload capacity, more robust construction, and are designed for intensive commercial use. In Atul Auto's case, the company manufactures L3 vehicles directly while L5 vehicles are produced through its subsidiary Atul Greentech Private Limited, which specializes in the electric variants of these heavier-duty commercial three-wheelers.
The sharp contraction in EV-L3 sales comes despite government push for electric mobility and various incentive schemes designed to accelerate adoption. Industry experts point to several factors contributing to this downturn, including inadequate charging infrastructure, higher upfront costs, concerns about vehicle range and reliability, and evolving policy frameworks that may have created uncertainty among buyers.
Comparing July and August figures reveals the persistence of these challenges. While EV-L3 sales showed a marginal improvement from 497 units in July to 575 units in August, the year-on-year comparison remains deeply troubling, indicating that recovery remains elusive.
In stark contrast to the EV-L3 segment's troubles, Atul Auto's subsidiary Atul Greentech Private Limited, which handles EV-L5 category vehicles, demonstrated resilience with 18.92% growth in August, selling 132 units versus 111 units in the previous year. However, this positive performance represents a small fraction of the company's total EV portfolio and has been insufficient to offset the broader electric vehicle segment decline.
The EV-L5 category's year-to-date performance of 67.29% growth (629 units vs 376 units) provides a glimmer of hope, suggesting that certain segments of the electric three-wheeler market may be finding acceptance. However, the absolute numbers remain modest compared to the larger EV-L3 market.
As electric vehicle sales continue to struggle, Atul Auto's traditional IC engine three-wheelers have stepped up to partially compensate for the EV shortfall. Domestic IC engine sales grew 5.99% in August to 1,894 units, while export markets showed even stronger appetite with 22.83% growth when including international sales.
This trend suggests that despite policy emphasis on electrification, market reality continues to favor conventional powertrains in the commercial three-wheeler segment. The reliability, established service networks, and lower total cost of ownership of IC engine vehicles appear to be winning over fleet operators and individual buyers.