Indian automotive industry clocks deals worth $1.3 billion in April-June
The automotive industry in India maintained its strategic momentum in Q2 2025, recording a total of 29 transactions valued at $1.3 billion, including public market activity, a report said on Monday.
The industry saw 28 deals worth $946 million, excluding IPOs and QIPs, according to Grant Thornton Bharat’s ‘Q2 Automotive Dealtracker.
As per the report, the deal values declined 36 per cent quarter-on-quarter (QoQ); however, they doubled compared to Q2 2024.
"This indicates a clear pivot toward higher-value transactions, and it also translated into a notable jump in average deal size — from $17 million to $34 million," the report stated.
The quarter’s activity was led by autotech and Mobility-as-a-Service (MaaS) segments, reflecting investor focus on scalable, tech-driven mobility solutions.
Electric vehicles (EVs) remained the largest driver, accounting for 34 per cent of deal volumes and 39 per cent of deal values, the report noted.
As per the report, shifting global trade dynamics, evolving domestic policies, and heightened investor appetite for innovation and clean mobility, India’s auto sector continues to transition toward a more sustainable and competitive future.
“The Indian auto industry is in a phase of strategic transformation—balancing policy shifts, global trade developments, and rising investor appetite for sustainable mobility solutions,” said Saket Mehra, Partner and Automotive Industry Leader, Grant Thornton Bharat.
While deal values softened slightly this quarter, the continued momentum in autotech and EV-led investments shows the sector’s pivot toward innovation, scalability, and long-term competitiveness, Mehra added.
Meanwhile, mergers and acquisitions (M&A) activity moderated in Q2 2025, with 8 deals totalling $305 million, marking an 11 per cent drop in volume and a 15 per cent decline in value from the previous quarter.
Despite the slowdown, the period saw a decisive pivot toward auto-tech innovation and platform-driven consolidation, the report said.
Private Equity (PE) landscape remained steady in Q2 2025, with 20 deals totalling $641 million, marking a 5 per cent increase in volume but a 43 per cent decline in value due to the absence of mega-deals.
Notably, excluding that outlier, this quarter reflects a fivefold increase in investment value, highlighting growing investor appetite for scalable and tech-enabled mobility solutions, the report mentioned.
