If the rise in number of three-wheelers in the rural areas is some indication, Atul Auto has been continuously outperforming the industry for the last five years. The company has been able to emerge as a leading brand in the three-wheeler segment on the back of some outstanding range of products. “We have been maintaining a CAGR of 21 per cent in the last 5 years and expect to deliver the outstanding performance going ahead as well. Application wise in the cargo segment we enjoy 21 per cent market share and in the passenger application (.5 tonner) we enjoy around 10 per cent market share,” reveals Mr. Jitendra Adhia, President (Finance), Atul Auto Ltd.
Notably, Atul Auto has two products in the front-engine family known as Atul Shakti and Atul Smart. In rear-engine, they have Atul Gem. Another variant is the Atul Gemini DZ-diesel engine and an alternative fuel variant Atul Gemini GX (available with Petrol CNG/ LPG). “Consumers have given a thumbs-up to our range of products and we have seen repeat orders even for our Atul Gemini CNG. We are heading towards our goal to provide electric three-wheelers. So by 2020 our focus is to have complete solutions on all the three-wheeler platforms”, says Mr. Adhia.
Formula for success
To further strengthen its market share and reach new markets Atul Auto ensures that its dealers are able to offer 3S (Sales, Service and Spare) solutions. “We have 200 primary dealers and 120 secondary dealers who are within a 30 km radius of the customer. We intend to double the count and have close to 400 dealers by 2020. We also have created 500 Atul Assistance Centres, known as ‘Atul Sahayak Kendra’ to address rural requirements. It brings out the dealer potential too as we give these secondary dealers training in spares and service,” he expresses.
In a bid to meet the growing requirements and garner more market share in the three-wheeler commercial segment, both locally and in countries like Sri Lanka, Bangladesh, Indonesia, African and Latin American continents, Atul Auto has started conceiving a greenfield project at Ahmedabad with a capacity of 60,000 units. “The new facility at Ahmedabad when operated at full swing will double our existing capacity of 60,000 units at Rajkot to a total of 120,000 units annually”, asserts the company’s Finance President.
The boom of E-Commerce with Small and Medium Enterprises will also add some numbers to the growing share of Atul Auto, particularly in rural and semi-urban areas. “These commercial vehicles will not only be used for transportation of passengers but also in cargo, where we stand second in the country. The acquisition cost will not only be half of any other small commercial four-wheeler but will also give a mileage of 35 to 40 km of per litre of diesel as compared to 20 to 25 km per litre of diesel in a four wheeler SCV. Our three-wheelers will help ease the last mile delivery for most of the e-commerce companies particularly in rural areas and boost last mile connectivity for passengers traveling through metros and bus on feeder routes,” he concludes.