$4.6 Billion in Deals: Thriving Growth in India’s Auto Sector in Q3, Reports Grant Thornton Bharat

India’s automotive sector had a remarkable third quarter in 2025, with 30 deals worth $4.6 billion. This surge was largely propelled by Tata Motors’ significant $3.8 billion acquisition of Iveco S.P.A., marking one of the largest outbound deals in the country’s automotive history. According to Grant Thornton Bharat, despite this high-value transaction, the overall value of deals (excluding Tata Motors’ acquisition) slipped by 36% compared to the previous quarter.

Saket Mehra, a partner at Grant Thornton Bharat, observed that the recent uptick in mergers and acquisitions indicates a shift towards scalable, tech-driven solutions in the automotive field. He noted the interplay of favorable policy changes and increased festive demand, suggesting a continued focus on alternative fuels and digital supply chains.

Interestingly, the automotive industry’s current phase is characterized by a strategic reset, balancing policy adjustments and global ambitions. The introduction of GST 2.0 and targeted tariffs has created a fertile ground for renewed interest in cleaner mobility options.

The data from the quarterly report reveals that while seven major deals were struck worth $4.1 billion, this represented a drop in the number of transactions but an astonishing 1,234% leap in total value from the previous quarter. Most of these deals—about 71%—were cross-border moves, with Asia and Europe emerging as active regions.

Aspects such as electric mobility, fleet electrification, and Mobility-as-a-Service (MaaS) have attracted considerable private equity interest, reinforcing a trend towards sustainable and tech-enabled automotive solutions. However, it’s worth noting that public market activity has remained quiet, with no major initial public offerings (IPOs) reported during this quarter.

This shifting landscape reflects a growing ambition within India’s automotive sector to adapt to global standards, invest in innovative technologies, and prioritize environmental concerns. With industry players reevaluating their strategies, the future of India’s automotive market looks set for exciting developments.

For more insights on automotive trends, check out the latest updates from the Economic Times.

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