India’s Auto Deals Zoom to US$ 4.6 Billion in Q3, Powered by Outbound M&A and EV Push

India’s automotive sector shifted into high gear in the third quarter of 2025, clocking 30 deals worth US$ 4.6 billion, according to the latest Grant Thornton Bharat Automotive Dealtracker. This marks the industry’s strongest quarter in over a year, underpinned by a surge in outbound mergers and acquisitions (M&A) and sustained investor confidence in electric mobility.

Tata Motors’ Iveco Buyout Dominates Deal Value

While overall transaction volumes stayed steady compared to the previous quarter, deal values soared on the back of Tata Motors’ USD 3.8 billion acquisition of Italy’s Iveco S.P.A. — one of India’s largest-ever outbound auto deals. Excluding this mega-transaction, total deal value fell 36% sequentially, underscoring the role of large strategic bets in shaping market momentum.

Saket Mehra, Partner and Automotive Industry Leader at Grant Thornton Bharat, said the sector is undergoing a “strategic reset,” balancing policy reforms, shifting consumer demand, and global expansion. He noted that “policy tailwinds like GST 2.0 and targeted tariff reforms” are fuelling investor confidence across electric and alternative mobility platforms.

Cross-Border M&A Drives Value Surge

M&A activity rose sharply in value terms, with seven transactions worth USD 4.1 billion, up more than 1,200% over Q2, despite a slight dip in volume. Cross-border deals accounted for 71% of total volumes and nearly all deal value, led by outbound expansions in Europe and Asia.

Apart from Tata Motors, Samvardhana Motherson International executed three overseas acquisitions, reinforcing India’s growing influence in global supply chains. Tata Technologies’ USD 88.2 million purchase of Germany’s Es-Tec GmbH added to the trend of Indian firms acquiring advanced engineering capabilities abroad.

Private Equity Bets on EVs and Mobility Platforms

Private equity activity held firm, logging 23 deals worth US$ 531 million—a 15% rise in volume but 17% decline in value due to smaller deal sizes. Investors showed strong preference for scalable tech-led models, with Mobility-as-a-Service (MaaS) dominating flows.

The biggest PE deal was Rapido’s US$ 271 million funding from Prosus and WestBridge Capital. IFC’s combined US$ 137 million investment in JBM Ecolife Mobility and GreenCell Mobility will fund 4,000 electric buses across 39 cities, expected to create 12,000 jobs and curb 1.6 billion kg of carbon emissions.

Also Read: Festive Auto Boom: 41% of Indians Ready to Buy Vehicles as GST 2.0 Spurs Demand | Republic World

IPO Pipeline Remains Muted

Public market activity stayed subdued with no major IPOs or QIPs in the quarter, though anticipation builds around Toyota India’s expected IPO in 2026, which analysts believe could re-energise automotive listings.

EV Innovation and Infrastructure Gain Ground

Venture funding continued to flow into deep-tech and EV infrastructure. TDK Ventures’ USD 21 million investment in Ultraviolette Automotive aims to scale its F77 performance bike globally, while early-stage funding rounds for Indigrid Technology, Evamp, PeakAmp, and Xbattery highlight the growing appetite for clean mobility innovation.