Automotive Dealtracker: Q2 2026

Q2 2026 witnessed the lowest quarterly volumes since Q2 2023, the only quarter to witness muted M&A activity in the Auto sector. While volumes declined, overall deal values saw a marginal 4% decrease compared to the previous quarter, largely due to capital being concentrated in a few high-value transactions across mobility platforms, automotive technology, and select public market fundraises.

M&A activity remained selective, with deal values largely concentrated in a single marquee, technology-led transaction, resulting in a sharp increase in average deal size from USD 6 million to USD 28 million quarter-on-quarter. This reflects rising demand for capabilities in software, cybersecurity and specialised mobility solutions. However, a significant proportion of transactions, around 60%, had undisclosed values.

Q2 2026 witnessed the lowest quarterly PE volumes since Q1 2021 while values declined 36% over previous quarter. PE activity continued to be led by early-stage and growth investments, with a large proportion of deals in seed, Series A and Series B stages, indicating ongoing capital deployment towards innovation and ecosystem development.

Public market activity rebounded in Q2 2026 following a completely muted Q1 through two EV-focused QIPs - Ather Energy (USD 156 million) and Ola Electric (USD 81 million) highlighting sustained investor appetite for established electric mobility players, reflecting confidence in the sector's growth trajectory and long-term electrification opportunity.