Atul Auto Limited announced on January 15, 2026, that its Board of Directors has approved the acquisition of the L5 category electric three-wheeler vehicle business from its subsidiary, Atul Greentech Private Limited (AGPL), in which Atul Auto holds a 79.39% stake. The transaction, valued at Rs 3,526 lakh (approximately Rs 35.26 crore), will be executed as a slump sale on a going concern basis and is expected to be completed within 15 days following approvals from the audit committee and board of directors.
The acquisition is aimed at unlocking synergies through the integration of operations, marketing, and dealership networks, enabling Atul Auto to reduce overall costs, optimize marketing expenses, and provide a wider sales network for L5 category electric three-wheelers. The company stated that existing dealers of conventional vehicles will also be able to sell L5 electric three-wheelers, ensuring continuity and enhanced profitability. This consolidation addresses sustainability challenges faced by standalone electric three-wheeler dealerships due to limited sales volumes.
AGPL’s L5 Vehicle Division currently manufactures and sells electric three-wheelers across global markets, including Belgium, France, Italy, South Africa, Peru, and the Philippines. The division has demonstrated significant growth, with turnover increasing from Rs 0.33 crore in FY 2022-23 to Rs 14.12 crore in FY 2023-24, and reaching Rs 62.27 crore in FY 2024-25.
Following the acquisition, AGPL will focus more on its battery manufacturing operations, which include the production of batteries, Battery Management Systems (BMS), chargers, telematics, and powertrains, enabling it to strengthen its core capabilities in electric mobility solutions.
Atul Auto has obtained a valuation report from an IBBI-registered valuer to ensure that the related-party transaction is conducted at arm’s length. The acquisition aligns seamlessly with Atul Auto’s existing business operations and does not require any additional governmental or regulatory approvals.
This strategic move underscores Atul Auto’s commitment to expanding its electric vehicle portfolio, enhancing global and domestic dealership reach, and supporting sustainable mobility solutions. The integration of AGPL’s L5 Electric Vehicle Division is expected to drive operational efficiencies, strengthen market presence, and reinforce Atul Auto’s position in the fast-growing electric three-wheeler segment.
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