Three-Wheeler Firm Atul Auto Expects Market Turnaround in Coming Months
Published On Mar 21, 2016
Atul Auto is among the leading marques in the three-wheeler segment of the country. After enjoying a well-garnered performance the last year, the brand is now facing a mild slowdown in concordance with the rest of the industry. The company had seen rapid growth over the past few years, having boomed by nearly 30 percent between 2010 and 2015.
Jitendra Adhia, president of the finance division of Atul Auto, is confident that the situation would turn back around, and hopes to score around 7 percent of growth in the fourth quarter of this fiscal.
“If you look at it from industry prospects, industry as far as the addressable market is concerned, that was diesel three-wheeler did not do well during the last three quarters and we were able to post positive numbers all across all the months as well as quarters. I agree that the pace has lowered down a bit, but we expect that very soon we will be back to this better growth momentum. We expect that this quarter will end up with almost similar numbers that is somewhere between 6-7 percent growth if you look at it from 9 months prospect. The three quarters which we have competed has registered almost 7 percent topline growth. We expect, once the sentiments are back to normal, once it improves, we will be back to better growth numbers,” he remarked.
Currently, the company is performing well around the country, but it has a specific market stronghold in states such as Gujarat and Rajasthan. Other states where it has been slow to get its hold have also been expanding off late.
“Apart from western where we have better dominance, Gujarat, Rajasthan, these states, eastern market definitely started contributing well in our sales compositions. As of now, all the states in which we are available, that is Bihar, Jharkhand, Orissa, enjoying in 0.5 tonne three-wheeler segment, almost 20 percent plus market share. Consistently improving in this market and this year, in addition to our regular products, we have introduced premium products as well for all the markets. And we expect that going forward, it will improve further. As far as cargo sales is concerned, now we stand number two consistently selling good numbers for the last 6-7 months and we expect that that is also going to contribute for further volume growth,” explained Mr Adhia.