Three-wheeler maker Atul Auto is eyeing growth from the eastern region of the country as it plans to diversify beyond its stronghold in the diesel segment into petrol, CNG and LPG run vehicles.
The company has been ramping up its dealer network in the eastern region since the last year.
It currently has 138 dealers in 20 states and plan to increase the number to 170 by the end of this fiscal, Vijay Kedia, director, Atul Auto, said.
“We are focusing on eastern India as the market seems to be growing faster than earlier. We are active in the North East and have a presence in Guwahati as well as Bihar and Chhattisgarh,” he said.
The company also plans a push beyond the diesel segment, which currently accounts for 90% of its existing sales.
The company’s new three-wheeler model set for launch early next year will mark its bid in the petrol, LPG and CNG segments, Kedia said.
“We plan to introduce a new model in early 2013. The model will mark a push in the petrol, CNG and LPG segments of the three-wheeler auto market. We are currently more active in diesel vehicles,” he said.
The diesel segment accounts for approximately 35% of the three-wheeler market, while petrol, CNG and LPG form the remaining 65%, according to Kedia.
In April-October, 3.06 lakh three-wheelers were sold in India, up 2.57% from 2.98 lakh vehicles in the same period last year.
An ICICI Securities report released in September said that Atul Auto’s plans to increase capacity would also help it in gaining market share.
“The company is in the process of doubling the capacity to around 48,000 units by fiscal 2014. This would lead to strong market share gains,” said the report by Nishant Vass and Venil Shah.
The stock hit a 52-week high of Rs144.9 on Thursday. It closed at Rs142.1 on Friday.