India’s automotive sector has shown impressive recovery, with 30 transactions worth a total of $4.6 billion in the latest quarter. This surge is significant, marking the sector’s strongest performance in over a year. A big contributor to this growth was Tata Motors, which acquired Iveco S.P.A. for $3.8 billion, making it one of the largest automotive deals in the country’s history.
However, if we look past the Tata Motors-Iveco deal, there was a noticeable drop in transaction values, down 36% compared to the previous quarter. This suggests that while deal volume remained steady, larger acquisitions are driving the overall momentum in the market.
Saket Mehra, a partner at Grant Thornton Bharat and an expert in the automotive industry, emphasized the sector’s ambitions for global expansion and the shift towards technology-driven platforms. He sees continued growth in areas like alternative fuel technologies, auto-tech, and supply chain digitization, particularly as festive demand rises in India.
Mehra also pointed out that recent policy changes, such as the rollout of GST 2.0, along with specific tariff interventions, have created a favorable backdrop for renewed demand. This aligns with a broader trend where manufacturers and investors are increasingly interested in sustainable, smart mobility solutions.
Recent data shows that the third quarter of 2025 witnessed a significant uptick in mergers and acquisitions, predominantly focusing on cross-border deals, which accounted for 71% of volumes and an astonishing 99% of total values. Asia and Europe emerged as key players in this landscape. Moreover, private equity investors remain keen on sectors related to electric mobility and fleet electrification.
Looking at historical trends, the Indian automotive industry has been through various phases of evolution. The current push towards electrification and smarter mobility is reminiscent of earlier shifts in manufacturing capabilities, where the focus transitioned from traditional vehicle production to embracing cutting-edge technologies.
In summary, India’s automotive sector is at a pivotal stage, aiming for global outreach while adapting to new technologies and market demands. As the landscape continues to evolve, it’s clear that both strategic players and investors are laying the groundwork for a more sustainable and competitive future.
For further insights, you can explore the Grant Thornton Bharat Automotive Dealtracker for detailed analysis and data on these trends.
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GRANT THORNTON BHARAT, TATA MOTORS, AUTO SECTOR, INDIAN AUTOMOTIVE SECTOR, INDIAN AUTO SECTOR SAW DEALS WORTH USD 4.6 BN IN Q3 SAYS GRANT THORNTON BHARAT
