Did the Indian automotive industry achieve $1.3 billion in deals during April-June?
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Synopsis
The Indian automotive industry has made remarkable strides in Q2 2025, achieving $1.3 billion in transactions. This report highlights the trends driving investments and the dynamic shifts in the sector, emphasizing the growth of electric vehicles and technology-driven solutions.
Key Takeaways
- 29 transactions worth $1.3 billion recorded.
- Deal values decreased 36 percent QoQ.
- Electric vehicles accounted for 34 percent of the deal volumes.
- M&A activity saw an 11 percent drop in volume.
- Private equity showed a 5 percent increase in deal volume.
New Delhi, July 14 (NationPress) The automotive sector in India sustained its strategic momentum in Q2 2025, achieving a total of 29 transactions worth $1.3 billion, including activities in the public market, as per a report released on Monday.
The industry recorded 28 deals valued at $946 million, excluding IPOs and QIPs, according to Grant Thornton Bharat’s ‘Q2 Automotive Dealtracker.
As highlighted in the report, the value of deals saw a decline of 36 percent quarter-on-quarter (QoQ); however, it marked a doubling compared to Q2 2024.
“This reflects a definitive shift towards higher-value transactions, resulting in a significant increase in the average deal size — from $17 million to $34 million,” the report indicated.
The activities for the quarter were spearheaded by the autotech and Mobility-as-a-Service (MaaS) sectors, underlining investor interest in scalable, technology-driven mobility solutions.
Electric vehicles (EVs) remained the predominant force, comprising 34 percent of deal volumes and 39 percent of deal values, the report noted.
According to the report, evolving global trade dynamics, changing domestic policies, and a heightened investor appetite for innovation and clean mobility continue to push India’s auto sector towards a more sustainable and competitive future.
“The Indian auto industry is undergoing a phase of strategic transformation—navigating policy shifts, global trade changes, and increasing investor interest in sustainable mobility solutions,” remarked Saket Mehra, Partner and Automotive Industry Leader at Grant Thornton Bharat.
Although deal values slightly decreased this quarter, the ongoing momentum in autotech and EV-led investments illustrates the sector’s shift towards innovation, scalability, and long-term competitiveness, Mehra added.
Meanwhile, mergers and acquisitions (M&A) activity saw moderation in Q2 2025, with 8 deals totaling $305 million, representing an 11 percent drop in volume and a 15 percent decline in value from the previous quarter.
Despite this slowdown, the period witnessed a decisive shift towards auto-tech innovation and platform-driven consolidation, the report stated.
The Private Equity (PE) landscape remained stable in Q2 2025, with 20 deals totaling $641 million, marking a 5 percent increase in volume but a 43 percent decline in value due to the absence of mega-deals.
Significantly, excluding that outlier, this quarter shows a fivefold increase in investment value, emphasizing the growing investor interest in scalable and technology-enabled mobility solutions, the report concluded.
Point of View
It is evident that the Indian automotive sector is at a pivotal juncture, balancing innovation with sustainability. The focus on electric vehicles and technology-driven solutions showcases a commitment to a competitive future while attracting significant investor interest. The data reflects a promising trajectory for the industry.
NationPress
14/07/2025
Frequently Asked Questions
What was the total value of transactions in the Indian automotive industry for Q2 2025?
The total value of transactions in the Indian automotive industry for Q2 2025 was $1.3 billion.
Which sector led the activity in the Indian automotive industry?
The autotech and Mobility-as-a-Service (MaaS) segments led the activity in the Indian automotive industry.
How much did electric vehicles contribute to deal volumes?
Electric vehicles accounted for 34 percent of deal volumes in the Indian automotive industry.
What was the trend in mergers and acquisitions in Q2 2025?
Mergers and acquisitions activity moderated in Q2 2025, with an 11 percent drop in volume and a 15 percent decline in value compared to the previous quarter.
How did the private equity landscape perform in Q2 2025?
The private equity landscape remained steady in Q2 2025, with 20 deals totaling $641 million, marking a 5 percent increase in volume but a 43 percent decline in value.
