Q3 2025: Indian automotive deal value soars, highlighting global expansion and electrification trends

New Delhi: India’s automotive sector saw its deal value soar to $4.6 billion across 30 transactions in Q3 2025 (July–September), marking the strongest quarter in over a year, according to a report released on Wednesday.

The surge was largely driven by Tata Motors’ $3.8 billion acquisition of Iveco S.P.A., which accounted for 95 per cent of total mergers and acquisitions (M&A) value during the quarter, the Grant Thornton Bharat report said.

The quarter reflected a strategic shift towards global expansion, electrification, and supply chain optimisation, as both strategic acquirers and private investors intensified focus on future-ready mobility platforms.

While deal volumes remained steady quarter-on-quarter, overall values surged due to Tata Motors’ outbound acquisition. M&A activity was dominated by cross-border consolidation, whereas private equity (PE) interest remained strong in scalable, technology-enabled segments such as electric mobility, fleet electrification, and Mobility-as-a-Service (MaaS).

M&A activity recorded seven deals totalling $4.1 billion, a 1,234 per cent increase in value compared with Q2. Cross-border transactions accounted for 71 per cent of deal volumes and 99 per cent of value.

Private equity activity included 23 deals worth $531 million, marking a 15 per cent increase in volume but a 17 per cent decline in value compared with the previous quarter. Around 70 per cent of these deals were under $10 million. MaaS continued to dominate PE deal flow, representing nearly 80 per cent of total PE value.

Additionally, International Finance Corporation (IFC)-backed funding of $137 million for electric bus operators reinforced investor confidence in urban electrification and multimodal transport infrastructure.

Public market activity remained subdued in Q3 2025, with no major IPOs or qualified institutional placements (QIPs) recorded. However, investor attention is firmly on the anticipated Toyota IPO in 2026, which is expected to reshape investment flows and revitalise sectoral interest.

IANS