Atul Auto to Acquire L5 Electric Three-Wheeler Business from Atul Greentech for ₹35.26 Crore

Key Highlights

• Atul Auto to acquire L5 E3W business for ₹35.26 crore.

• Transaction to be completed via slump sale.

• Strong global presence across six countries.

• FY25 turnover rose sharply to ₹62.27 crore.

• AGPL to focus on battery and EV components.

Atul Auto Limited has approved the acquisition of the L5 electric three-wheeler vehicle business from its subsidiary, Atul Greentech Private Limited (AGPL), in a strategic move to strengthen its electric mobility operations.

The decision was approved by the company’s Board of Directors on January 15, 2026. Atul Auto, which holds a 79.39% stake in AGPL, will acquire the L5 electric three-wheeler business for ₹3,526 lakh (around ₹35.26 crore). The transaction will be carried out as a slump sale on a going concern basis and is expected to be completed within 15 days after receiving approvals from the audit committee and board.

Purpose of the Acquisition

According to disclosures made to BSE and NSE, the acquisition aims to create strong operational synergies by combining manufacturing, marketing, and dealership networks. This consolidation is expected to lower overall costs, reduce marketing expenses, and improve market reach for L5 category electric three-wheelers.

With this move, Atul Auto’s existing dealers of conventional vehicles will also be able to sell L5 electric three-wheelers. This will help ensure business continuity and better profitability, especially as exclusive electric three-wheeler dealerships often struggle due to limited sales volumes.

Strong Growth in L5 Electric Three-Wheeler Business

AGPL’s L5 Vehicle Division manufactures and sells electric three-wheelers in both domestic and international markets. The business has a global presence in countries such as Belgium, France, Italy, South Africa, Peru, and the Philippines.

The division has shown strong financial growth in recent years. It recorded a turnover of ₹62.27 crore in FY 2024–25, a sharp rise from ₹14.12 crore in FY 2023–24 and ₹0.33 crore in FY 2022–23.

Focus Shift for Atul Greentech

After the completion of the transaction, AGPL will focus more on its battery manufacturing operations. This includes the production of batteries, Battery Management Systems (BMS), chargers, telematics solutions, and powertrains, allowing the subsidiary to concentrate on core technology development.

Valuation and Regulatory Details

Atul Auto has obtained a valuation report from an IBBI-registered valuer, confirming that the transaction will be conducted at arm’s length, even though it is a related party transaction. The company also clarified that the acquisition aligns with its existing business operations and does not require any additional government or regulatory approvals.

This strategic consolidation marks an important step for Atul Auto as it strengthens its position in the growing electric three-wheeler segment while improving operational efficiency across its business.

Also Read: EV Retrofits Seen as Fast-Track Solution for India’s Commercial Vehicle Transition

CMV360 Says

Atul Auto’s acquisition of the L5 electric three-wheeler business from Atul Greentech marks a strategic consolidation to strengthen its EV portfolio. The move will improve cost efficiency, expand dealership reach, and ensure better sustainability for electric three-wheeler sales. At the same time, it allows Atul Greentech to focus on advanced battery and powertrain technologies, supporting long-term growth in electric mobility.