With Gujarat increasing its value added tax, sales of Atul Auto were hit until May 15, said Jitendra Adhia, the President-Finance, adding that the company has picked up momentum and will make up for the losses in the coming quarters. The VAT on units sold by manufacturers to dealers in Gujarat was increased from 15 percent to 20 percent while VAT on sales made by dealers to customers was at 15 percent resulting in a tax anomaly and thereby low off-take in the state. Total sales is up .27 percent at 3,339 units from 3,330 on a year-on-year basis in the first quarter of this fiscal year. Adhia expects sales volumes to improve to 3,500 units in second and third quarters in the wake of upcoming festive season. The company has added alternative fuel-three wheelers and expects them to help revive output. It sold around 42,000 vehicles in the domestic market, he added.
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