Sonalika Tractor to get into microcars; To set up dedicated EV plant

 Amid rising global demand for clean micro-mobility, India’s largest tractor exporter Sonalika Tractors plans to enter the emerging electric quadricycle market in Europe, starting with the Netherlands.

According to a senior company official, Sonalika has already designed a product focused on Western markets in partnership with a global engineering firm. 

“We are at a good stage of developing the product (quadricycle),” Sonalika Group Joint Managing Director Raman Mittal told Autocar Professional. He did not disclose the launch timeline, but the product may be available within 12-24 months.

“The product is designed in India with global partners. So, the prototype is ready. We are going through the feedback phase…We are in no hurry. We are very close to the endgame. We are almost getting there,” he said.

Punjab-based Sonalika is a major tractor manufacturer in India with a share of around 13.5% in the domestic market. The company is a top tractor exporter from India, with an export market share of around 34.3%.

Sonalika Group believes it is the right time to enter the electric microcars segment as these are gaining popularity in Europe. They are significantly smaller and lighter than traditional cars, and easy to park, and navigate on busy streets.

Explaining the rationale behind entering the segment, Mittal said, “We have noticed that microcars are something that every European country would need, considering their smaller size and ease of parking. Moreover, unlike in India, pricing entry-level/small cars is not a challenge in western countries.”

While they may be termed ‘microcars’ in Amsterdam, technically, they are homologated as L7E (heavy quadricycles) and L6E (light quadricycles) in Europe.
This new model will likely come from an all-new, electric-only manufacturing facility – the company’s third factory. Apart from the EV quadricycle, Sonalika will also be making electric tractors at the same facility.

The company has one facility in Hoshiarpur, Punjab, and is setting up a second plant there for exports.

While the company strongly emphasizes vertical integration, with significant sourcing of essential parts happening from Hoshiarpur, Punjab, it is exploring the potential of other states in North India for the third factory.
“It is exciting now. It will be all shaping up at one big plant focusing on electric vehicles,” Mittal said.

The company will invest around Rs 1,000 crore in the entire electrification project, including developing the quadricycle, electric tractors, and the new electric vehicle plant.