India's Automotive Sector Boosts Deal Activity with $1.5 Billion in Q1 2025

Key Takeaways

29 deals worth $1.5 billion in Q1 2025.
191% surge in deal values compared to the previous quarter.
Focus on electric vehicles and sustainability driving growth.
Domestic transactions dominated the M&A landscape.
Private equity investments surged with 19 deals totaling $1.12 billion.

New Delhi, April 17 (NationPress) India’s automotive and mobility sector experienced 29 transactions totaling $1.5 billion during the January-March quarter (Q1) this year, according to a report released on Thursday.

When excluding IPOs and QIPs, the sector noted a 27 percent increase in deal volume—from 22 in Q4 2024 to 28—along with an impressive 191 percent growth in deal values, escalating from $509 million to $1.4 billion, as per the findings of a report by Grant Thornton Bharat.

This expansion was fueled by a combination of strategic and financial investments, which included a notable billion-dollar private equity transaction, alongside increased interest in emerging markets such as electric vehicles (EVs), autotech, and Mobility as a Service (MaaS).

The presence of a billion-dollar deal and three significant transactions worth $50 million each highlights the sector’s ongoing appeal to investors.

“India’s automotive and mobility sector is experiencing a crucial transformation, propelled by electrification, digital integration, and a growing emphasis on sustainability. Despite changing global trade dynamics and supply chain challenges, investor confidence remains robust, as evidenced by the substantial increase in deal volumes and values this past quarter,” stated Saket Mehra, Partner and Auto Industry Leader at Grant Thornton Bharat.

To maintain competitiveness, Indian companies must intensify their focus on innovation, strategic partnerships, and value-added services, especially in sectors like EVs, auto components, and next-generation mobility solutions, he added.

The M&A landscape within India’s automotive and mobility sector continued to rise in Q1 2025, with 9 deals amounting to $359 million.

This marks the third consecutive quarter of growth, largely driven by domestic consolidations aimed at boosting localization and aligning product portfolios.

While inbound activities saw a rebound with Italy’s Fontana Gruppo acquiring a 60 percent stake in Right Tight Fasteners for $115 million, outbound activities remained subdued.

Domestic transactions prevailed, with the average deal size increasing from $5 million in the previous quarter to $31 million.

Private equity and venture capital activities in India’s automotive and mobility sector showed significant growth in Q1 2025, recording 19 deals worth $1.12 billion. This indicates a six-fold (500 percent) increase in deal values and a 36 percent rise in volumes compared to the last quarter.