India Auto Sector Deals Hit Record $4.6 Billion in Q3 2025: Report
India auto sector deals reached an all-time high of $4.6 billion across 30 transactions in the July–September quarter (Q3 2025), according to the Grant Thornton Bharat Automotive Dealtracker report. This marks the strongest quarterly performance in over a year, propelled primarily by Tata Motors’ $3.8 billion acquisition of Iveco S.P.A., which alone represented nearly 95 per cent of the total mergers and acquisitions (M&A) value.
Cross-Border M&A Drove Value Surge
Grant Thornton Bharat’s report highlighted that M&A activity was dominated by outbound and cross-border transactions, underscoring a strategic shift toward global expansion, electrification, and supply-chain recalibration.
Seven M&A deals together were worth $4.1 billion, reflecting a 1,234 per cent rise over Q2 2025. Five of these were outbound, contributing 71 per cent of volumes and 99 per cent of values. Notably, Samvardhana Motherson International completed three acquisitions across Asia and Europe.
“While volumes remained consistent around 30 deals, the sector posted its highest-ever quarterly deal values, largely driven by Tata Motors’ USD 3.8 billion acquisition of Iveco S.P.A. Barring this deal, values declined 36 per cent compared to the previous quarter,” the report said.
Stable Private Equity Interest in Mobility-as-a-Service
Private equity (PE) activity remained steady, focusing on scalable, technology-enabled models such as electric mobility, fleet electrification, and Mobility-as-a-Service (MaaS).
There were 23 PE transactions worth $531 million, up 15 per cent in volume but down 17 per cent in value compared with Q2 2025. Deals below $10 million made up 70 per cent of total volume, showing strong interest in early-stage opportunities.
MaaS continued to attract most investors, accounting for 80 per cent of total PE value. A key highlight was the $137 million IFC-backed investment in electric-bus operators, reinforcing investor confidence in urban electrification and multimodal transport infrastructure.
Public Markets Await Toyota IPO
Public market activity in the automotive space remained subdued, with no major IPOs or QIPs recorded during Q3 2025. However, analysts note sustained investor attention on the anticipated Toyota IPO in 2026, expected to be a potential game-changer for auto-sector capital inflows.
Sector Outlook
Industry analysts suggest that despite the one-off nature of the Tata Motors–Iveco deal, India’s automotive ecosystem is well-positioned for continued M&A momentum. The combination of global expansion, electrification, and digital mobility solutions is likely to sustain deal activity heading into 2026.
Grant Thornton Bharat concluded that the sector’s near-term outlook remains “cautiously optimistic,” with OEMs and investors aligning strategies toward long-term sustainability and global competitiveness.
