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Fueling the future: Automotive and alternative fuel technology
India’s automotive industry is currently valued at USD 222 billion and is expected to reach USD 300 billion by 2026. It accounts for 8% of the country’s total exports and 7.1% of GDP. With 100% FDI allowed for the industry under the automatic route, it was the second largest FDI attracting industry in the country, accounting for 15.8% of total FDI between 2021-22.
As the industry pivots towards sustainable mobility steered by government focus, the EV (projected to grow at a CAGR of 49% between 2022-2030) and alternative fuel technology markets, such as green hydrogen cells, clean energy and mobility solutions are expected to attract immense investor interest. Additionally, as per IEA, this transition to clean energy- including renewable batteries, green hydrogen, and other clean technologies is expected to create a market of USD 80 billion in India by 2030- out of which USD 19 billion (~24%) is expected to be attributable to green hydrogen.
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The second quarter of 2026 reflected more selective capital allocation, with investors backing differentiated technology and scalable business models. The Q2 2026 edition of the Automotive Dealtracker analyses mergers and acquisitions, private equity and public market activity, highlighting key deal trends across mobility platforms, automotive technology and the EV ecosystem.
Explore M&A and investment activity in India’s automotive sector for Q1 2026, with insights on EV trends, deal activity and evolving market dynamics.
Explore Grant Thornton Bharat’s pre-Budget 2026 insights across sectors including automotive, banking, technology, infrastructure, healthcare, taxation, and investment priorities shaping India’s economic, regulatory, and policy landscape.
The report highlights the need for AI-driven traffic monitoring, improved infrastructure, vehicle safety, and strict enforcement to reduce road accidents.