Popular Vehicles & Services Ltd (PVSL), a leading automotive dealership company, has reported a modest 1% year-on-year revenue growth for the first quarter. The company's performance was marked by significant variations across different vehicle segments, with luxury car sales emerging as a standout performer.

Segment-wise Performance

The company's Q1 results revealed contrasting trends across its various business segments:

Luxury Car Segment

• Witnessed an impressive growth of approximately 40% compared to the same period last year.

Commercial Vehicle (CV) Segment

• Showed a positive trend with a 4% growth.

Passenger Vehicle (PV) Segment

• Excluding luxury vehicles, this segment experienced a decline of 7%.

Other Segments

• Electric Vehicles (EV) and spare parts distribution collectively grew by about 15%.

Despite the mixed performance across segments, the total number of vehicles sold by PVSL decreased by approximately 1% compared to the same quarter of the previous year.

Network Expansion Initiatives

Popular Vehicles & Services Ltd has announced several strategic expansion moves:

1. Ather EV Facilities: Received a Letter of Intent (LOI) to establish Ather facilities in Chennai, Tamil Nadu. Operations are expected to commence by the first week of September 2025.

2. Maruti Suzuki True Value Outlet: Secured an LOI from Maruti Suzuki to set up a new independent True Value outlet for pre-owned vehicles in Bangalore, Karnataka. The outlet is slated to begin operations by the end of August 2025.

3. BharatBenz Facilities: Obtained an LOI to establish eight state-of-the-art 3S (Sales, Service, and Spare parts) facilities for BharatBenz in Punjab.

Awards and Recognition

The company and its subsidiaries have received several accolades:

• Popular Autoworks Pvt Ltd (PAWL), a wholly-owned subsidiary, was named the All-India 1st Runner-Up for 'Retail of the Year 2024-25' by JLR and ranked No. 1 in new bookings and growth across the JLR network in India.
• PVSL received an award from Maruti Suzuki for the 'Dealer with the Highest Paid Service to Sales Ratio' for NEXA.
• Popular Mega Motors (India) Pvt Ltd (PMMIL), another wholly-owned subsidiary, received multiple accolades from Tata Motors, including 'Best Customer Success Centre - South India' for May and June, and 'Highest Volume Growth' in spare parts for FY25 in South India.

Market Outlook

The company reported encouraging trends across segments, with luxury segment demand continuing to rise. Pre-festive footfalls have been strong across all segments, indicating positive momentum heading into the festive season. The two-wheeler electric segment also shows robust demand, with the company's client products gaining strong market acceptance.

As part of its festive season preparedness, Popular Vehicles typically increases inventory levels during Q1, resulting in a sequential rise in stock.

The company notes that Q1 is typically a seasonally slower quarter, but the current trends suggest a positive outlook for the coming months. The financial results for Q1 are subject to review by auditors.

Popular Vehicles & Services Ltd continues to adapt to changing market dynamics, focusing on expanding its network and capitalizing on growth opportunities across various automotive segments.

Popular Vehicles & Services Limited has announced a significant expansion in its electric vehicle (EV) operations. The company's wholly-owned subsidiary, Kuttukaran Cars Private Limited, has received a Letter of Intent (LOI) to set up Ather facilities in Chennai, Tamil Nadu.

Expansion Details

The new Ather facilities in Chennai will be spread across two locations:

• An Experience Centre
• A Service Centre and warehouse

The service centre is planned to initially feature 5 bays, with a capacity to service approximately 450 vehicles per month. Operations are expected to commence by the first week of September this year.

Investment and Strategic Importance

Popular Vehicles & Services Limited estimates a total investment of around Rs 75.00 Lakhs for setting up these facilities. This move is part of the company's strategy to expand its presence in the two-wheeler EV ecosystem and strengthen its foothold in Tamil Nadu.

Management Commentary

Mr. Naveen Philip, Promoter and MD of Popular Vehicles & Services Limited, commented on the development:

"We're pleased to announce the receipt of a Letter of Intent from Ather, marking an important milestone in our journey to grow within the two-wheeler EV ecosystem and deepen our presence in Tamil Nadu. This development reflects our continued focus on expanding our geographic footprint beyond Kerala and tapping into emerging opportunities in the electric mobility space."

Company Background

Popular Vehicles & Services Limited is a part of the diversified Kuttukaran Group, which 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. It operates dealerships for various brands including Maruti Suzuki, Jaguar Land Rover, Honda, Tata Motors, Bharat Benz, Ather Energy, and Piaggio.

Network Details

The company's extensive network includes:

• 63 showrooms
• 136 sales outlets and booking offices
• 32 pre-owned vehicle showrooms and outlets
• 146 authorized service centers
• 47 retail outlets
• 24 warehouses
• 7 Driving Schools

This expansion into Chennai's EV market aligns with Popular Vehicles & Services Limited's strategy to diversify its revenue streams and capitalize on the growing electric mobility sector in India.