Driven by robust outbound merger and acquisitions (M&A) and continued EV momentum, India’s automotive sector recorded as many as 30 deals worth $4.6 billion in July-September quarter (Q3) of 2025.
As per a report released on Wednesday by consultancy firm Grant Thornton Bharat, the Q3 of 2025 is the strongest quarter in a year for the Indian auto sector in terms of number of deals.
The deal activity was largely driven by Tata Motors’ $ 3.8 billion acquisition of Italian commercial vehicle maker Iveco during the period under review. It contributed 95% of total M&A value.
“Excluding this deal, values dipped 36% over the last quarter, signalling that large strategic bets continue to define overall deal momentum,” said Grant Thornton Bharat in a release.
The September quarter of 2025 reflected a strategic pivot toward global expansion, electrification, and supply chain recalibration, as both strategic acquirers and private investors intensified focus on future-ready mobility platforms.
The report said that while M&A activity was dominated by cross-border consolidation plays, private equity (PE) interest remained steady in scalable, tech-enabled segments such as electric mobility, fleet electrification, and Mobility-as-a-Service (MaaS).
“The Indian automotive sector is in a phase of strategic reset — balancing policy reform, consumer realignment, and global expansion. The rollout of GST 2.0 and targeted tariff interventions have set the stage for renewed demand, even as OEMs and investors pivot toward cleaner, smarter mobility solutions,” said Saket Mehra, Partner and Automotive Industry Leader, Grant Thornton Bharat.
Mehra further noted that the September quarter’s strong M&A and PE activity reflects India’s growing global ambition in commercial mobility and a clear shift toward scalable, tech-enabled platforms.
“As policy tailwinds and festive demand converge, we anticipate sustained momentum across alternative fuel technologies, auto-tech, and supply chain digitisation,” he added.
Cross-border deals dominated in the Q3 of 2025, accounting for 71% of volumes and 99% of total values, with Asia and Europe being key regions of activity.
Samvardhana Motherson International executed three outbound acquisitions during the quarter, reinforcing India’s role in global auto supply chains.
As per the report, PE activity remained strong in Q3, with 23 deals worth $531 million, marking a 15% increase in volumes but a 17% drop in values compared to Q2.
“The decline in value reflects the absence of large-ticket transactions, as 70% of deals were below $10 million, underscoring investor preference for smaller, focused bets,” the report said.
MaaS continued to dominate PE deal flow, accounting for nearly 80% of total PE value, led by Rapido’s $271 million investment from Prosus and WestBridge Capital. IFC-backed funding in electric bus operators JBM Ecolife Mobility and GreenCell Mobility, together worth $137 million, further reinforced investor confidence in urban electrification and multimodal transport infrastructure.
