Gujarat-based Atul Auto vrooms 10% after declaring EV foray

Atul Auto Ltd.

Shares of Gujarat-based three-wheeler manufacturer Atul Auto surged over 10 percent on April 21 after the company announced a foray into electric vehicle manufacturing with battery swapping technology.

In a filing on April 20, the firm said subsidiary Atul Greentech Pvt Ltd  (AGPL) is collaborating with Honda Power Pack Energy India and Valeo to develop the prototype cargo and passenger three-wheelers with Honda Mobile Power Pack.

Atul Auto will launch the e-vehicle after successful completion of field trials.

"The vehicle with swapping battery will be equipped with Valeo's integrated compact electric powertrain system. The swappable solution from AGPL will enable our fleet and individual customers to lower the total cost of ownership and upfront capital expenditure," the company added.

AGPL designs and develops solutions for last-mile electric mobility for domestic and export markets.

Atul Auto shares were trading at Rs 203.75 apiece at 11.40 am, up 10.6 percent from the April 20 closing price.

Brokerage ICICI Direct had assigned a target price of Rs 210 for the stock in its research report dated April 5. The report had said that Atul Auto is the fourth-largest three-wheeler player with an FY21 domestic market share of 7.1 percent (10.3 percent in cargo segment and 5.1 percent in passenger segment).