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The second quarter of 2025 marked a period of strategic continuity for India’s automotive sector, with deal activity reflecting sustained investor engagement across mergers, private equity, and public offerings. Automotive Dealtracker 2025 edition captures this momentum, highlighting the sector’s alignment with technology-led growth and service-oriented models. Autotech and Mobility-as-a-Service (MaaS) remained central to transaction flow, reinforcing the industry's shift toward scalable innovation.
Policy developments and global trade dynamics added further dimension to the quarter’s outlook. India’s formal challenge at the WTO and progress on the India-UK Free Trade Agreement signal potential shifts in sourcing and export strategies for manufacturers. Meanwhile, domestic discussions around clean mobility incentives and hybrid vehicle taxation continue to shape investment priorities.
The automotive industry accounted for 5% of the total deal volume for the quarter and 8% of the total deal value. EVs were the main driver of deal activity, representing 34% of the total sector volume and 39% of the total sector value.
Since Q3 2020, M&A activity has been consistently driven by domestic consolidations. However, cross-border deal values saw a notable increase, accounting for 63% of total M&A value, primarily due to a single multimillion-dollar acquisition valued at USD 191 million.
Although PE/VC deal volumes remained stable at 20 transactions, total investment value dropped by nearly 43% due to the absence of big-ticket investments, coupled with a billion-dollar fundraise by Erisha E Mobility (USD 1 bn) that took place in the previous quarter. Despite the decline, the quarter still saw two high-value deals totalling USD 406 million, which accounted for 63% of the overall investment value.
Ather Energy launched its IPO at a revised valuation of USD 1.4 billion, less than its earlier target of USD 2.5 billion. The move aims to support new product development, battery R&D, and the expansion of its retail and manufacturing presence, highlighting a strategic push to scale operations amid a cautious market environment.
This edition presents a comprehensive overview of deal trends, sectoral pivots, and regulatory movements, offering stakeholders a timely reference point for strategic planning and market assessment.
The Q2 2025 edition of #GTBharat's Real Estate/REITs Dealtracker highlights selective capital deployment, a preference for fewer but larger transactions, and a measured return of IPO and QIP activity.
India’s deal environment in Q2 2025 reflected a measured approach to capital deployment, shaped by sectoral realignments and selective investor participation.
The May 2025 edition of Dealtracker presents a detailed analysis of sector movements, investor sentiment, and strategic shifts across deal types.
