According to the Grant Thornton Bharat Q3 2025 Automotive Dealtracker, India’s automotive sector recorded its strongest quarter in over a year, with 30 transactions valued at USD 4.6 billion. While deal volumes remained consistent with the previous quarter, values surged sharply, largely driven by Tata Motors’ USD 3.8 billion acquisition of Iveco S.P.A., marking one of India’s largest outbound automotive transactions to date.
Excluding this deal, values dipped 36% over the last quarter, signalling that large strategic bets continue to define overall deal momentum. The quarter 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. 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).
Saket Mehra, Partner and Automotive Industry Leader, Grant Thornton Bharat, commented on the deal activity, “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. The 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.”
Mergers and Acquisitions (M&A) landscape: M&A activity surged in Q3 2025, with 7 deals valued at USD 4.1 billion, marking a 13% decline in volumes but a 1,234% increase in value over Q2. Cross-border deals dominated, 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. The top M&A deal was TML CV Holdings PTE Ltd’s acquisition of Iveco S.P.A. for USD 3.7 billion, which contributed 95% of total M&A value, underlining India’s strategic global ambitions in the commercial mobility space.
Private Equity (PE) landscape: PE activity remained strong, with 23 deals worth USD 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 USD 10 million, underscoring investor preference for smaller, focused bets. Mobility-as-a-Service (MaaS) continued to dominate PE deal flow, accounting for nearly 80% of total PE value, led by Rapido’s USD 271 million investment from Prosus and WestBridge Capital. IFC-backed funding in electric bus operators JBM Ecolife Mobility and GreenCell Mobility, together worth USD 137 million, further reinforced investor confidence in urban electrification and multimodal transport infrastructure.
Initial Public Offering (IPO) & Qualified Institution Placements (QIP) Landscape: Public market activity remained subdued in Q3 2025, with no major IPOs or QIPs recorded. However, investor focus remains high on the anticipated Toyota IPO in 2026, which is expected to reshape investment flows and reinvigorate sectoral interest. The preference for private capital and strategic consolidation continued to dominate funding trends this quarter.
Sector Trends:
1. Tata Technologies’ USD 88.2 million acquisition of Germany’s Es-Tec GmbH enhanced its ADAS and digital engineering expertise, reflecting India’s push toward next-gen vehicle innovation.
2. Inbound and domestic consolidation continued, with Germany’s Schmitz Cargobull investing in Sub Zero Insulation Technologies and Prabal Motors acquiring BharatBenz dealerships, underscoring sustained global and domestic confidence in India’s auto ecosystem.
3. Clean mass mobility gained traction, with IFC’s USD 137 million investment in JBM Ecolife and GreenCell Mobility to deploy 4,000 e-buses across 39 cities, creating over 12,000 jobs and reducing 1.6 billion kg of carbon dioxide.
4. Deep-tech EV innovation accelerated, led by TDK Ventures’ USD 21 million investment in Ultraviolette Automotive to scale its high-performance F77 platform and expand into global markets.
5. EV infrastructure and component manufacturing drew early-stage funding, including Indigrid Technology’s USD 4 million raise and capital infusions into Evamp, PeakAmp, and Xbattery, reflecting investor confidence in India’s growing clean mobility ecosystem.