Indian Automotive Industry Sees $1.3 Billion in Deals: Key Insights from April to June

New Delhi: The Indian automotive industry has shown resilience in Q2 2025, with 29 transactions totaling $1.3 billion. According to Grant Thornton Bharat’s Q2 Automotive Dealtracker, this included 28 deals valued at $946 million, excluding IPOs and QIPs.

While the deal value fell by 36% compared to the previous quarter, it doubled from Q2 2024. This suggests a shift towards more significant transactions, with the average deal size increasing from $17 million to $34 million.

Investment has mostly focused on Autotech and Mobility-as-a-Service (MaaS), signaling growing interest in tech-savvy mobility solutions. Electric vehicles (EVs) led the charge, making up 34% of deal volumes and 39% of values.

As the market evolves, factors such as shifting global trade patterns and changing domestic policies are shaping India’s auto sector. “The Indian auto industry is undergoing a strategic transformation, balancing innovation with sustainability,” said Saket Mehra, Partner and Automotive Industry Leader at Grant Thornton Bharat. He noted that, despite a slight drop in overall deal values, investment in autotech and EVs indicates a strong focus on sustainable solutions and long-term growth.

Mergers and acquisitions (M&A) did slow down in Q2 2025, with eight deals totaling $305 million—an 11% drop in volume and a 15% decline in value from the previous quarter. Nonetheless, the industry is pivoting towards tech-driven innovation and consolidation.

Private equity investments remained steady, with 20 deals amounting to $641 million. This reflects a 5% increase in deal volume but a 43% decline in total investment value due to the absence of large deals. Nevertheless, excluding exceptional cases, this quarter showcases a fivefold increase in investment value, indicating a rising interest in scalable, tech-enabled mobility solutions.

In summary, the Indian automotive sector is adapting rapidly, focusing on innovation and sustainability. As investors increasingly favor advanced technologies, the landscape is likely to change further.

For more insights on the automotive sector, you can visit Grant Thornton Bharat’s latest reports.

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Indian Automotive Industry, Automotive Industry, Automobile news, Automotive Dealtracker