They are dominant players in the regional markets. But auto companies such as Delhi-based Sonalika (which manufactures tractors), Gujarat-based Atul Auto [Get Quote] (three wheelers) and Mumbai-based Asia Motor Works (commercial vehicles) are now planning a major thrust to go national.

The Rs 3,000 crore (Rs 30 billion) Sonalika Group, which had made an aborted attempt to buy Punjab Tractors [Get Quote], but lost out to Mahindra & Mahindra, has a sizeable 18 per cent market share of tractors in Punjab (it has around 10 per cent nationally) - making it number two. It is aiming for a nation-wide launch in October and is assembling over 200 dealers for the all-India onslaught.

The group is targeting 30 per cent increase in sales, at around 47,000 units of tractors, through its enhanced dealership size, by March 2008. The company sold about 36,000 tractors in financial year ended March 2007.

LD Mittal, chairman, Sonalika Group, said, "We are in the process of expanding our dealership base throughout the country for which we have already got 5,000 applications. We are also doubling our capacity to 80,000 units from the current 40,000 at our plant in Punjab with an investment of Rs 150 crore (Rs 1.5 billion)."

In order to cater to the southern market, Mittal is looking at a plant in that region. It is mulling a greenfield plant, which could come up in Tamil Nadu, Karnataka or Andhra Pradesh, with an investment of about Rs 250-300 crore (Rs 2.5-3 billion) and having an annual capacity of 40,000 units. The company will also launch an SUV by December.

International Car and Motors, Sonalika's group company, launched the multi-utility vehicle Rhino only in the northern markets. But, buoyed by its success, the company is launching it nationally and hopes to get a 10 per cent market share by December with sales of 2,000 units every month.

Gujarat-based Atul Auto, manufacturer of commercial and passenger three-wheelers, aims to become a national-level player by 2009. The company has a dominant position in Gujarat with 50 per cent market share (it sells 12,500 units a year) of the three-wheeler commercial and passenger vehicle market in the state.

Hiren Doshi, DGM-finance, Atul Auto, said, "With a subsequent increase in the dealer base, we aim to sell 19,000-20,000 units in the country by March 2008 and get 10 per cent market share of the total national three-wheeler market. At the moment, it has a share of 4 per cent. Also, by March 2009 our targeted sales is 32,000 units with revenue generation expected to be Rs 350 crore (Rs 3.5 billion)."

Atul Auto has a presence in states such as Gujarat, Rajasthan and Maharashtra, but is now focusing on the southern and eastern states of the country. By December, the company will launch a new rear-engine diesel vehicle to counter the competition, which mostly consists of similar rear-engine vehicles.