India's automotive sector recorded 30 transactions valued at USD 4.6 billion in September quarter, its strongest in over a year, boosted by Tata Motors' USD 3.8 billion acquisition of Iveco S.P.A., Grant Thornton Bharat said on Wednesday.
Excluding the Tata Motors-Iveco deal, values dipped 36 per cent over the June quarter, signalling that large strategic bets continue to define overall deal momentum, as per Grant Thornton Bharat Q3 2025 Automotive Dealtracker.
While deal volumes remained consistent with the previous quarter, values surged sharply, largely driven by Tata Motors' USD 3.8 billion acquisition of Iveco S.P.A., marking one of India's largest outbound automotive transactions to date, it added.
"The quarter's strong M&A and PE activity reflects India's growing global ambition in commercial mobility and a clear shift toward scalable, tech-enabled platforms," Grant Thornton Bharat Partner and Automotive Industry Leader, Saket Mehra said.
As policy tailwinds and festive demand converge, he said,"We anticipate sustained momentum across alternative fuel technologies, auto-tech, and supply chain digitisation." Mehra noted that the Indian automotive sector is in a phase of strategic reset - balancing policy reform, consumer realignment, and global expansion.
"The rollout of GST 2.0 and targeted tariff interventions have set the stage for renewed demand, even as OEMs and investors pivot toward cleaner, smarter mobility solutions," he added.
According to the Automotive Dealtracker, September quarter (Q3) reflected a strategic pivot toward global expansion, electrification, and supply chain recalibration, as both strategic acquirers and private investors intensified focus on future-ready mobility platforms.
While M&A activity was dominated by cross-border consolidation plays, private equity (PE) interest remained steady in scalable, tech-enabled segments such as electric mobility, fleet electrification, and Mobility-as-a-Service (MaaS), it added.
Mergers and acquisitions (M&A) activity surged in Q3 2025, with seven deals valued at USD 4.1 billion, marking a 13 per cent decline in volumes but a 1,234 per cent increase in value over Q2.
Cross-border deals dominated, accounting for 71 per cent of volumes and 99 per cent of total values, with Asia and Europe being key regions of activity.
Samvardhana Motherson International executed three outbound acquisitions during the quarter, reinforcing India's role in global auto supply chains, Grant Thornton Bharat said.
However, public market activity remained subdued in Q3 2025, with no major IPOs or QIPs recorded, it added.
