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Automotive Dealtracker: Q1 2025
The automotive and mobility sector in India is experiencing a pivotal phase, shaped by a shift towards electrification, technological advancement and strategic market expansion. As new themes dominate investment priorities, the industry is witnessing a pronounced acceleration in deal activity, particularly in electric vehicles, auto components and digital mobility platforms. Investor sentiment remains constructive, backed by a clear focus on capability building, localisation and cross-border scaling.
Recent developments in global trade and resource security are prompting companies to reassess their cost structures and supply chain resilience. In response, businesses are strengthening their value propositions through differentiated offerings and integrated solutions. Strategic transactions are increasingly centred on expanding product portfolios, enabling advanced manufacturing, and reinforcing digital competencies. This momentum reflects a broader intent to create future-ready platforms capable of meeting both domestic and global demand.
The Q1 2025 edition of the Automotive Dealtracker examines the key transactions, investment themes and structural shifts that are shaping sector consolidation. It highlights how stakeholders are aligning strategies to build scale, ensure supply continuity and compete effectively in a changing global context.
Key insights from the Automotive Dealtracker: Q1 2025
Q1 2025 witnessed a strong 12% increase in volumes while values declined significantly by 63% over the previous quarter owing to Hyundai Motor’s marquee USD 3.6 billion IPO. Barring this deal, the sector witnessed a substantial 112% increase in values. The quarter witnessed a one-billion-dollar deal and three high-value deals (≥ USD 50 million), reflecting continued investor interest in the sector.
The overall M&A activity has been on a q-o-q increase for the last three quarters, driven by a focus on localisation and synergising product portfolios. While domestic consolidations continued to drive the M&A deals, overall cross-border activity declined.
Although PE values were largely driven by a single large investment, volumes were heavily dominated by smaller ticket deals (≤USD10 million), contributing an 80% share and indicating a diverse and active deal landscape.

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