Atul Auto Acquires L5 Electric Three-Wheeler Business for ₹35.26 Crore

Atul Auto Limited has announced the acquisition of the L5 electric three-wheeler business from its subsidiary, Atul Greentech Private Limited (AGPL), in a strategic move aimed at strengthening its electric mobility operations. The acquisition, approved by Atul Auto’s Board of Directors on January 15, 2026, is valued at ₹35.26 crore and will be executed as a slump sale on a going concern basis. The transaction is expected to conclude within 15 days, following necessary approvals from the audit committee and board.

The acquisition is designed to create strong operational synergies by integrating manufacturing, marketing, and dealership networks. By consolidating these functions, Atul Auto aims to reduce overall costs, streamline marketing expenses, and enhance market penetration for L5 electric three-wheelers. Notably, the move allows Atul Auto’s existing conventional vehicle dealers to sell L5 electric three-wheelers, ensuring business continuity and improved profitability. This is particularly significant given the limited sales volumes that standalone electric three-wheeler dealerships often face.

AGPL’s L5 vehicle division has experienced rapid growth in recent years, with operations spanning several international markets, including Belgium, France, Italy, South Africa, Peru, and the Philippines. The division’s financial performance has strengthened sharply, reporting a turnover of ₹62.27 crore in FY 2024–25, a substantial rise from ₹14.12 crore in FY 2023–24 and ₹0.33 crore in FY 2022–23.

Post-acquisition, AGPL will shift its focus to battery and EV component manufacturing. The subsidiary will concentrate on developing batteries, Battery Management Systems (BMS), chargers, telematics solutions, and powertrains, reinforcing its position in core technology development within the electric vehicle ecosystem.

Atul Auto has confirmed that the transaction has been reviewed by an IBBI-registered valuer and will be carried out at arm’s length, despite being a related-party transaction. The company also stated that the acquisition aligns with its existing operations and does not require any additional regulatory approvals.

This strategic consolidation marks a key milestone for Atul Auto as it expands its footprint in the growing electric three-wheeler segment while improving operational efficiency. By combining dealer networks, manufacturing capabilities, and marketing resources, Atul Auto is positioning itself to capture greater market share and support the adoption of electric mobility solutions domestically and internationally.