Popular Vehicles and Services Ltd will acquire R.K.S. Motor’s business via slump sale for Rs 930 million. The deal expands Popular’s dealership network and service footprint, especially in South India. It supports the company’s growth strategy through operational integration, regional consolidation, and improved customer access across Tier-2 and Tier-3 markets.
Popular Vehicles and Services Ltd has approved the acquisition of R.K.S. Motor’s business through a slump sale valued at Rs 930 million. The move marks a strategic expansion of Popular’s automotive footprint, reinforcing its presence in key regional markets and strengthening its multi-brand dealership portfolio.
Key Highlights
- The Rs 930 million transaction will be executed via slump sale, allowing Popular Vehicles to acquire R.K.S. Motor’s business as a going concern without individual asset valuation
- R.K.S. Motor operates multiple dealership outlets and service centers, primarily in South India, with a focus on passenger vehicles and after-sales services
- The acquisition includes physical infrastructure, workforce, customer contracts, and vendor relationships, enabling seamless operational integration
- Popular Vehicles aims to leverage R.K.S. Motor’s regional brand equity and customer base to accelerate growth in Tier-2 and Tier-3 cities
- The deal is expected to be completed by Q4 FY26, subject to regulatory and shareholder approvals
- Management stated that the acquisition aligns with Popular’s strategy to scale its dealership network and enhance service delivery across geographies
- The company has been actively pursuing inorganic growth to diversify its brand mix and improve operating margins
Strategic Takeaways
- The slump sale structure offers tax efficiency and faster execution compared to asset-by-asset acquisitions
- Popular Vehicles is positioning itself as a pan-India auto retail player, with a focus on multi-brand dealership consolidation
- The acquisition may improve economies of scale, reduce overheads, and enhance customer retention through expanded service coverage
- Analysts expect the deal to be earnings accretive from FY27, with synergies realized through backend integration and cross-selling opportunities
Market Outlook
- India’s auto retail sector is undergoing consolidation, driven by digital transformation, EV adoption, and rising customer expectations
- Popular Vehicles’ expansion strategy aligns with OEMs’ push for standardized dealership experiences and wider service reach
- The company may explore further acquisitions or joint ventures to deepen its presence in high-growth corridors
- Investor sentiment remains positive, with attention on execution timelines and post-acquisition performance metrics
Sources: Reuters India Auto Desk, Business Standard Deal Tracker, Economic Times Mobility Briefs, Popular Vehicles And Services BSE Filing (October 8, 2025)
