Thought leadership

Automotive Dealtracker: Q1 2024

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The latest edition showcases the Indian automotive industry's resilience amidst global challenges in the first quarter (Q1) of 2024. Despite a drop in overall deals, investments in electric vehicles (EVs) and mobility services remain strong. Strategic partnerships and PE investments demonstrate a focus on global networks and technology, with the aim of fostering sustainability and growth.

Key insights from the Automotive Dealtracker 2024:

Sustained deal activity with declined ticket sizes: As the Indian automotive industry continues its path to sustained recovery against the backdrop of global macroeconomic challenges and a broader market slowdown, the sector has witnessed a trend of selective investments, characterised by sustained deal volumes, while there was almost a 49% decline in deal values over the last quarter. This suggests targeted, bolt on acquisitions and early-stage investments are influenced by the industry’s focus on electric vehicles (EVs), mobility services and technological integration.

Electric Vehicles and Mobility-as-a-Service lead: Investor interest in both sub-sectors is notable, reflecting the global trend toward sustainable transportation and service-focused automotive models. The industry is prioritizing R&D and new technologies to align with the shift towards sustainable and connected vehicles, driving consolidation for synergies and value creation. Additionally, as the EV value chain improves and consumer adoption grows, these sub-sectors are attracting considerable investor attention.

Strategic acquisitions for R&D and global reach: Partnerships and strategic alliances, such as the collaboration between TVS Mobility and Mitsubishi Corporation or the investment by Mitsui & Co. in Pinnacle Mobility, exemplify how companies are leveraging global networks and expertise to bolster their market positions and innovation capabilities. Such moves are not only about capital infusion but also about accessing new technologies, markets, and competencies. Similarly, the PE trends signal the industry’s focus towards electrification, digital transformation and sustainability. The strategic stake acquisitions, such as Creador’s investment in Hinduja Tech, underscores a focused approach toward enhancing R&D and expanding global footprints in sustainable mobility.