Auto Dealer Expands Into A New State In Partnership With Maruti Suzuki
This marks our entry into the Karnataka market.
Popular Vehicles and Services Limited has announced the opening of a new state-of-the-art 3S facility in Bangalore, Karnataka, marking its entry into this key market. This facility, developed in collaboration with Maruti Suzuki, integrates a showroom, service center, and spare parts distribution under one roof, spanning a total area of 15,000 sq. ft. The investment of approximately Rs 9 crores underscores the company's commitment to expanding its presence beyond Kerala and Tamil Nadu.
Mr. Naveen Philip, Promoter and MD, expressed excitement about this expansion, highlighting it as a significant milestone in their growth journey. The facility aims to cater to the increasing demand for passenger vehicles in Bangalore, driven by the city's robust economy. Popular Vehicles and Services Limited, part of the Kuttukaran Group, operates a vast network of dealerships across multiple states, offering a wide range of automotive services and products. This strategic move aligns with the company's long-term vision of diversifying revenue streams and strengthening OEM partnerships.
About Popular Vehicles and Services Limited
Popular Vehicles and Services Ltd, incorporated in 1983, is a prominent player in the Indian automotive dealership sector. As part of the diversified Kuttukaran Group, the company boasts a robust presence across four states with a network of 445 touchpoints. It is one of the largest authorized dealerships for Maruti Suzuki India Limited (MSIL) vehicles. The company’s business model encompasses the sale of new vehicles, services and repairs, spare parts distribution, and the sale/exchange of pre-owned cars. Additionally, it facilitates third-party financial and insurance products and operates driving schools.
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In FY24, the company reported a production volume of 46,665 new vehicles and 10,698 pre-owned vehicles, with the services and repairs business handling over 1 million units. Revenue is primarily driven by new vehicle sales, accounting for 69 per cent, followed by spare parts and accessories at 15 per cent. The company continues to expand its network, with plans to launch a NEXA Studio in Thrissur and a new 3S facility in Chhatrapati Sambhaji Nagar. Popular Vehicles and Services Ltd remains committed to enhancing its market presence and diversifying its revenue streams. The company has a market cap of over Rs 700 crore and has delivered good profit growth of 27.5 per cent CAGR over the last 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.