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India’s automotive sector is seeing renewed deal momentum, shaped by policy reforms, investor interest, and strategic expansion across global markets. The Q3 2025 edition of the Automotive Dealtracker presents a detailed view of mergers, acquisitions, and private equity activity, with a clear focus on future-ready segments such as electric mobility, auto-tech, and supply chain digitisation.
This quarter’s report highlights how capital is being directed toward scalable platforms and technology-led solutions, with outbound transactions leading to M&A volumes and Electric Vehicles and Mobility-as-a-Service dominating private equity interest. It also reflects how regulatory shifts like GST 2.0 are influencing pricing strategies and inventory decisions across the value chain. This edition offers timely insights into the direction of deal activity and the strategic priorities shaping the automotive value chain.
While volumes remained consistent around 30 deals, the sector posted its highest-ever quarterly deal values, largely driven by Tata Motors’ USD 3.8 billion acquisition of Iveco S.P.A. Barring this deal, values declined 36% compared to the previous quarter.
M&A was led by cross-border deals across Asia and Europe, dominated by outbound transactions with 5 out of 7 deals, contributing 71% of the volumes and 99% of the values. Notably, Samvardhana Motherson International executed three outbound acquisitions.
PE posted the highest quarterly volumes for the year, while values have been on a decreasing trend since the last three quarters owing to the absence of big-ticket transactions. PE activity was dominated by small-ticket deals (<= USD 10 million), which accounted for 70% of the volumes.
Q3 2025 saw automotive companies actively raising fresh capital to support expansion into new markets and scale operations, particularly in areas such as electric mobility, connected vehicle technologies, and global footprint enhancement.
