Atul Auto sold 40,711 3W in FY’20, defends market share.
Published On Apr 23, 2020
The Rajkot based company sells a range of 3W across the country logged a reasonable demand for its vehicles, thus safeguarding its market share. While the economic slump is weighed heavily on the overall auto sector, the 3W demand remain moderate.
The omnipresent 3Ws are a vital element of the last-mile transportation needs in India. The 3Ws are affordable and convenient to operate, thus creating large employment opportunities for people. India is among the biggest domestic 3W market globally and the manufacturers also exports a sizable number of these vehicles to several markets overseas.
There are several major players catering this segment, Atul Auto is one such local full range 3W makers in India. The company has been growing steadily despite fierce competition from more prominent established brands. Over the years, Atul Auto has expanded its network- the sales and services across India to penetrate deeper into the some of the high volumes 3W states in India.
The 3W segment in India has formidable players such as Bajaj Auto, Piaggio Vehicle, Mahindra & Mahindra and TVS Motors as demand for this category of vehicles continues to remain strong. Atul Auto backed by its indigenously developed strong 3W portfolio has been able to grow in an intensely competitive market.
In FY’19-20, the total 3W industry sold 6,35,569 units, and this was down by 9% as compared to FY’19. While the rest of the automotive industry has been going through a severe slowdown, the 3W industry fared well. This is perhaps due to persistent demand in the rural and semi-urban areas as these geographies are underserved in India.
In the same period, Atul Auto sold 40,711 units (-8.5%) with a 6.4% market share in the overall 3W segment almost at the same level as of FY’19. The company sales comprise of 23,275 units of passenger and 17,436 units of cargo 3Ws. The demand for both the passenger and cargo 3W remains reasonably stable for the company.
While Indian 3W finding a lot of demand in the overseas market which was largely captured by Bajaj Auto and TVS Motors, Atul Auto remain focussed on the domestic markets. Yet, the company is exploring export opportunities by exporting to a few markets. In FY’20, it shipped 3,371 units (-39%).
Atul Auto caters to the 3W industry with a strong product portfolio of cargo and passenger vehicles. With its deeper market understanding and strong inhouse technology, the firm has developed vehicles in several fuel options. This offers a wide range of choices to the customers as per the application and operating economics.
Atul Auto has a manufacturing plant in Rajkot, Gujarat with an annual production capacity of 60,000 units per annum with modern technology and equipment like CNG machines, fabrication and paint shop, and testing facilities.