Atul Auto to source engines from Lombardini

Plans to introduce CNG and LPG-run 3-wheelers

The Rajkot-based Atul Auto Ltd has signed an agreement to purchase compressed natural gas (CNG) and liquefied petroleum gas (LPG) engines from Lombardini India.

Atul Auto has plans to introduce CNG and LPG-run three-wheeler vehicles in the commercial and passenger categories over the next few months.

Lombardini India, a wholly owned subsidiary of Lombardini, Italy, has developed eco-friendly engines for three-wheeler applications at its manufacturing facility at Aurangabad in Maharashtra.

Its product range, which includes CNG, LPG and diesel-run engines, meets Euro-II emission norms that will become applicable from April 1.

"Last year we purchased 25,000 units of Lombardini engines from LIPL and with our decision to introduce CNG and LPG-run passenger and commercial purpose three-wheelers in the first quarter of the next fiscal, we have decided to purchase these engines from Lombardini India," said J J Chandra, managing director, Atul Auto.

He added that the purchase of engines from Lombardini, which was worth between Rs 10-12 crore, will substantially increase in the next fiscal as CNG and LPG-run vehicles will be introduced.

He said it would be too early to state how many engines Atul Auto will source from Lombardini in the next fiscal.

He said three different types of engines will be sourced from Lombardini India, which will include two that will run on CNG or LPG and the third will be diesel-powered. "The 280 cc and 340 cc engines will be CNG and LPG run, while the 422 cc engines will be diesel-run," Chandra said.

He said from a production capacity of around 1,200 vehicles per month, the production capacity is expected to rise to 2,500 vehicles per month by the end of the first quarter of the next fiscal.

A Rs 5 crore expansion project has earmarked for the next few months.

With the LPG and CNG vehicles, both in the load carrier and passenger categories, expected to be launched in the first quarter of the next fiscal, Atul Auto will look to boost its exports through LPG and CNG run vehicles.

The company has identified African countries, mainly Nigeria, Kenya and Tanzania, for exports.

After clocking a turnover of Rs 90 crore in the 2003-04 fiscal, Atul Auto aims at ending the present fiscal with a turnover of Rs 125 crore.

The company manufactures and markets vehicles under the Atul Shakti brand name and the range comprises pick-ups, delivery vans, passenger versions and special purpose vehicles.