India auto sector logs $717 million across 20 deals in Q2 2026: Grant Thornton
Synopsis
India's auto sector pulled in $717 million across 20 deals in Q2 2026, but the real story is in the composition: EVs dominated PE volumes at 54 per cent, Auto Tech grabbed 87 per cent of M&A value, and investors are clearly backing technology and electrification over traditional scale plays — a structural shift, not a quarterly blip.
Key Takeaways
India's automotive sector recorded 20 deals worth $717 million in Q2 2026 , per Grant Thornton Bharat .
Overall deal values fell 4 per cent sequentially, with capital concentrated in high-value transactions.
Mobility-as-a-Service led sector deal values at $298 million .
M&A activity recorded 5 deals worth $138 million ; Auto Tech accounted for 87 per cent of M&A value.
PE/VC logged 13 deals worth $341 million ; EVs made up 54 per cent of PE deal volumes.
Excluding public market activity, the sector saw 18 transactions worth $479 million .
India's automotive sector recorded 20 deals worth $717 million in Q2 2026, according to a report released on Monday, 13 July by Grant Thornton Bharat. Overall deal values eased marginally by 4 per cent sequentially, even as capital remained concentrated in a handful of high-value transactions spanning mobility platforms, automotive technology, and public market fundraisers.
Mobility Platforms Lead Deal Values
Mobility-as-a-Service (MaaS) emerged as the dominant segment, accounting for $298 million in deal value — the largest share across the sector. Sustained investor appetite for scalable ride and fleet platforms underpinned this performance, even as broader deal volumes moderated.
Excluding public market activity, the sector logged 18 mergers, acquisitions, and PE/VC transactions worth $479 million, with investors continuing to back technology-led mobility businesses, electrification plays, and EV ecosystem enablers amid a more selective funding climate.
M&A Activity: Quality Over Quantity
Mergers and acquisitions remained selective in Q2 2026, with just five deals totalling $138 million. Investors prioritised technology-led capability building over scale-driven consolidation. Auto Tech accounted for 87 per cent of total M&A value, reflecting growing strategic bets on software, cybersecurity, and connected mobility. Despite lower deal volumes, average deal size rose significantly, signalling a shift toward high-conviction, high-value transactions.
PE/VC Flows: EVs Dominate
Private equity and venture capital activity moderated to 13 deals worth $341 million during the quarter, as investors exercised caution in a challenging funding environment. Electric Vehicles (EVs) dominated PE deal volumes, accounting for 54 per cent of all PE transactions — underscoring the sustained momentum behind India's electrification push.
What Industry Leaders Are Saying
Saket Mehra, Partner and Auto & EV Industry Leader at Grant Thornton Bharat, said investment remained anchored to businesses shaping the future of mobility. 'We are seeing continued interest in EVs, mobility platforms and automotive technologies, with investors becoming more selective and backing companies that have demonstrated scale, differentiated capabilities and a clear growth path. As the sector evolves, technology-led investments are expected to continue shaping deal activity,' Mehra said.
What to Watch Next
The concentration of capital in a few large transactions — rather than broad-based deal flow — suggests investors are in a consolidation mindset rather than an expansion phase. With EV adoption accelerating and software-defined vehicles gaining traction globally, deal activity in auto tech and electrification is expected to remain robust through the second half of 2026.
Point of View
But the 4 per cent sequential dip and concentration in just a few large transactions point to a market growing more discerning, not more confident. The 87 per cent Auto Tech share of M&A value is the real signal — acquirers are no longer buying market share; they are buying software stacks and cybersecurity capabilities. India's EV sector continues to attract PE capital, yet 54 per cent of PE volumes in a single sub-segment raises concentration risk. If EV adoption timelines slip or policy incentives shift, deal momentum could compress sharply in Q3.
NationPress
13 Jul 2026
Frequently Asked Questions
How many automotive deals did India record in Q2 2026?
India's automotive sector recorded 20 deals worth $717 million in Q2 2026, according to a Grant Thornton Bharat report released on 13 July. Overall deal values eased 4 per cent sequentially from the previous quarter.
Which segment led automotive deal values in Q2 2026?
Mobility-as-a-Service led overall sector deal values with $298 million in Q2 2026, driven by continued investor interest in scalable mobility platforms.
How did EV investments perform in Q2 2026?
Electric Vehicles dominated PE deal volumes, accounting for 54 per cent of all PE transactions in Q2 2026. Capital continued to flow into the EV ecosystem and electrification enablers despite a selective funding environment.
What drove M&A activity in India's auto sector during Q2 2026?
M&A activity recorded 5 deals worth $138 million, with Auto Tech accounting for 87 per cent of M&A value. Investors prioritised technology-led capability building — particularly in software, cybersecurity, and connected mobility — over traditional scale-driven acquisitions.
What is the outlook for India's automotive deal activity in the second half of 2026?
According to Grant Thornton Bharat's Saket Mehra, technology-led investments in EVs, mobility platforms, and automotive technologies are expected to continue shaping deal activity. Investors are likely to remain selective, backing companies with demonstrated scale and a clear growth path.
