India’s Auto Sector: Average Deal Size Soars to $34 Million in Q2 2025, Even Amid Fewer Transactions – Latest Insights from ET Auto

India’s automotive sector is undergoing a major shift. According to the latest Automotive Dealtracker by Grant Thornton Bharat, there were 29 deals in Q2 2025, totaling $1.3 billion. While the number of transactions dropped from the previous quarter, the value of each deal more than doubled.

To put it simply, the average deal size jumped from $17 million to $34 million. This change is partly because investors are increasingly interested in high-value projects, especially in automotive tech and Mobility-as-a-Service (MaaS) platforms. Electric vehicles (EVs) played a big role, representing 34% of all deals and 39% of total deal value.

Saket Mehra, a partner at Grant Thornton Bharat, noted that the industry is in a transformational phase. It’s balancing new policies, changing global trade, and growing interest in sustainable mobility options.

Mergers and Acquisitions (M&A) Trends

The M&A landscape in the automotive sector has also seen change. There were eight deals worth $305 million, with a noticeable decline from the previous quarter. Most activity was domestic, but the biggest transaction was KPIT Technologies’ $191 million purchase of Caresoft Global, making up 63% of the total M&A value.

Experts suggest that the focus is shifting towards digital mobility and tech solutions. This aligns with the global trend of integrating technology into traditional industries. In fact, recent statistics from McKinsey indicate that companies investing in tech integrations have seen up to a 20% increase in efficiency.

Private Equity and Market Activity

Private equity (PE) activity remained steady with 20 deals worth $641 million. However, the absence of mega-deals led to a 43% drop in value. Notably, Greenline Mobility Solutions secured a $275 million investment this quarter, making headlines in the PE landscape.

The public market had limited activity, featuring one significant IPO—Ather Energy—which raised $343 million. The company plans to use this capital for product development and expanding its market reach.

Looking Ahead

Despite current fluctuations, investor interest in India’s clean mobility sector is robust. There’s a growing appetite for innovative, scalable business models that include infrastructure for EVs, like charging networks. As the Indian automotive sector evolves, it reflects broader global trends focusing on sustainability and technology integration.

For ongoing insights into market shifts, you can explore the Grant Thornton Bharat report for more in-depth analysis.

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