Atul Auto, a prominent Rajkot-based three-wheeler manufacturer, has ambitious plans to expand its footprint in the Indian market and increase its global presence. With a strategic focus on boosting sales and enhancing product offerings, the company is setting high expectations for the future. The company is targeting sales of 40,000 units in FY25 (April 2024 - March 2025), a significant jump from the 26,000 units sold last year. Additionally, Atul Auto is targeting 50,000 units in FY26. To achieve this, the company has outlined a strong plan that includes expanding its dealer network and increasing its export contributions.

Sales Target and Expansion Plans

Atul Auto is committed to an aggressive sales strategy. As of the current year, the company has been averaging about 2,700-2,800 units per month. The goal is to ramp this up to 4,000 units per month by the January-March 2025 quarter (Q4FY25). To support this ambitious growth, the company has been expanding its dealer network rapidly. By November 2024, 40 new dealers were added, indicating the company’s dedication to increasing its domestic market reach. These efforts are expected to play a significant role in helping Atul Auto meet its sales targets in the coming years.

Focus on Electric Vehicles (EVs)

One of the most notable trends in Atul Auto's recent performance is the increasing role of electric vehicles (EVs) in the company's sales mix. Currently, 28% of Atul Auto’s total sales come from electric vehicles, mainly in the L3 and L5 segments, which are designed for transporting goods and passengers. The company has already established a strong presence in the EV segment with a product range that includes L3 and L5 EVs.

However, the company experienced mixed results in the EV segment, with L3 sales declining by 15% to 526 units, while L5 EV sales increased to 151 units. Despite these mixed results, Atul Auto remains confident that the share of electric vehicles in its overall sales will continue to rise. With the growing popularity of electric three-wheelers in India, the company plans to strengthen its presence in the L3 and L5 EV markets and increase the adoption of electric three-wheelers.

Expansion of Export Contributions

In addition to its focus on domestic market growth, Atul Auto is also keen on increasing its presence in international markets. The company currently derives 11% of its revenue from exports, but there are plans to boost this share to 15-20% within the next three years. This will be achieved through increased exports and repeat orders from existing markets. Atul Auto's efforts in expanding exports will likely contribute to its overall growth, further enhancing the company's market position globally.

Performance and Market Capitalisation

Atul Auto has also seen a steady improvement in its market capitalisation, which currently stands at ₹1,737.51 crore. This marks a slight growth of nearly 1% in the past year, indicating that investors have confidence in the company’s ability to execute its growth plans. With the expansion of its EV lineup and the aggressive push to increase sales, Atul Auto is positioning itself as a major player in the Indian electric three-wheeler market.

Plans for the Future: L3 and L5 Segments

As part of its future plans, Atul Auto is focusing on the expansion of its L3 and L5 electric vehicle segments. These vehicles are designed for both passenger and goods transport, making them versatile and in high demand in many urban areas. The company is planning to introduce new models and enhance the performance and efficiency of its existing EVs to cater to the growing demand for electric three-wheelers.

Increasing Dealer Network and Expanding Dark Stores

Atul Auto's commitment to expanding its dealer network will continue, and it plans to further improve its distribution capabilities. With more dealers joining the network, the company aims to enhance its accessibility and product availability across India. The company is also exploring new ways to expand its EV offerings to meet the growing demand for clean energy solutions in the transportation sector.

The company's future growth prospects are promising, with substantial efforts to expand production capabilities, grow its export market, and improve its EV offerings. With these strategies in place, Atul Auto is well-positioned to meet its goals for the next few years.

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