Popular Vehicles & Services Limited (NSE: PVSL, BSE: 544144), a leading integrated automotive dealership player in India, has announced its strategic expansion into Telangana state through a partnership with long-time collaborator Maruti Suzuki India Limited (MSIL). This move marks a significant milestone in the company's growth trajectory and strengthens its presence in the South Indian market.

Acquisition of Existing Dealership

The company has received in-principle approval from Maruti Suzuki to acquire an existing authorized dealership in Telangana. This acquisition encompasses a network of 19 locations across the state, including:

• 5 owned premises
• 14 leased/licensed premises
• 27 authorized touchpoints covering various Maruti Suzuki operations

The extensive network includes sales outlets, service centers, True Value outlets, driving schools, and back-end operations, positioning Popular Vehicles & Services strongly in this rapidly growing market.

Scope of Acquisition

The acquisition will involve the transfer of operational assets, excluding land and buildings owned by the vendor. Assets to be acquired include:

• Leasehold buildings and improvements
• Electrical fittings
• Office equipment
• Plant and machinery
• Tools and equipment
• Furniture and fixtures
• Computers
• Virtual/digital assets

Additionally, the existing dealer has agreed to grant a limited, non-exclusive, royalty-free license for co-branding, which Popular Vehicles & Services may use for up to 36 months post-transfer.

Strategic Importance

This expansion aligns with Popular Vehicles & Services' long-term vision of establishing a pan-India presence and diversifying beyond its stronghold in Kerala. The move into Telangana, one of India's fastest-growing automotive hubs, is expected to:

1. Strengthen the company's customer reach
2. Enhance service revenues
3. Reinforce its position as a leading integrated automotive dealership player

Management Commentary

Mr. Naveen Philip, Promoter and MD of Popular Vehicles and Services Limited, expressed enthusiasm about the expansion: "We are delighted to mark our entry into Telangana in collaboration with our long-standing partner, Maruti Suzuki India Limited. We are honoured to represent the MSIL brand at such an iconic location in Telangana. This acquisition is a significant milestone in our growth journey, enabling us to expand into a strategically important market in line with our long-term vision of establishing a pan-India presence and diversifying beyond Kerala."

Company Background

Popular Vehicles and Services Limited, part of the diversified Kuttukaran Group, has been operating multi-brand automobile dealerships for 70 years. The company has a strong presence in Kerala, Tamil Nadu, Karnataka, and recently expanded into Maharashtra. Its extensive network now comprises:

These facilities span across multiple districts in Kerala, Karnataka, Tamil Nadu, and Maharashtra, showcasing the company's robust presence in significant markets across India.

The expansion into Telangana reinforces Popular Vehicles & Services' commitment to growth, customer-centric solutions, and technology-led service excellence in the automotive retail sector.

Popular Vehicles & Services Ltd (PVSL), a prominent player in the automotive retail sector, has announced the successful completion of its divestment from Vision Motors Private Limited (VMPL), a step-down subsidiary of the company. The transaction, which involved the sale of PVSL's entire 100% stake in VMPL, was finalized on August 25, 2025.

Divestment Details

The divestment process, which had been in the works for several months, reached its conclusion with PVSL selling off its complete ownership in VMPL. Prior to the sale, VMPL was wholly owned by Popular Mega Motors (India) Private Limited, a subsidiary of PVSL, along with its nominee.

Corporate Governance and Transparency

In line with regulatory requirements, PVSL has been transparent about the divestment process:

• The company's Board of Directors had initially approved the divestment proposal in a meeting held on February 12, 2025.
• A subsequent board meeting on May 29, 2025, further deliberated and approved the divestment plan.
• The final execution of the divestment took place on August 25, 2025.

Regulatory Compliance

PVSL has adhered to the regulatory framework by promptly disclosing the completion of the divestment. In accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company filed an intimation with both the BSE Limited and the National Stock Exchange of India Limited on August 26, 2025.

Impact and Future Outlook

While the financial terms of the divestment have not been disclosed, this strategic move is likely part of PVSL's efforts to streamline its operations and focus on core business areas. The divestment of VMPL could potentially impact the company's financial structure and operational dynamics going forward.

Investors and stakeholders can find more details about this development on the company's official website at www.popularmaruti.com .

As the automotive retail landscape continues to evolve, Popular Vehicles & Services Ltd's decision to divest from VMPL may signal a shift in its long-term strategy. Market observers will be keen to see how this move affects the company's performance and market position in the coming quarters.