Date:25/04/2007 URL: http://www.thehindubusinessline.com/2007/04/25/stories/2007042504550300.htm

Back Atul Auto plans LCV launch in two years

Virendra Pandit

Ahmedabad April 24 The Rajkot-based Atul Auto Ltd will launch its four-wheeler light commercial vehicle (LCV) in two years.

The offering, now at the drawing board stage, seeks to compete with the Tata Ace, the one-tonne LCV, and would cost Rs 2-2.5 lakh, Mr Hiren Doshi, Deputy General Manager (Finance), told Business Line.

These LCVs would be manufactured at the Rajkot-based plant.

On the market potential, he said that it would be a "completely new segment" and it is difficult to estimate the number of vehicles the company would be able to sell in a year.

By July, the company plans to launch a rear-engine three-wheeler, which has a national and international market.

In particular, southern States such as Andhra Pradesh have a huge market for this vehicle, which will be manufactured at the company's Rajkot and Haridwar plants.

Atul Auto launched a one-tonne three-wheeler, the Shakti, in 2001.

Today, more than 60,000 Shaktis ply on Indian roads, which has given Atul five per cent market share.

The company may foray into African markets of Egypt, Nigeria and Tanzania for the Shakti, Mr Doshi said.

By 2010, Atul Auto is targeting 12 per cent share in this segment.

Its Rajkot and Haridwar plants have annual capacity of 12,000 vehicles each.

Atul Auto is present in three segments of the three-wheelers - passenger, commercial pick-up vehicle and special vehicles like chicken carriers and closed tippers. It plans to enter Maharashtra with CNG vehicles shortly.