India’s auto deals surge to $4.6 billion in Q3 2025 in strongest quarter ever

New Delhi, Oct 22 India's automotive sector's deal value touched $4.6 billion with 30 transactions in the July-September (Q3) 2025 period, marking the strongest quarter in over a year, a report said on Wednesday.

The surge was primarily fuelled 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 in Q3 2025, the report from Grant Thornton Bharat said.

The quarter 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, the report added.

Deal volumes remained unchanged quarter-on-quarter, but values surged due to the outbound Tata Motors acquisition.

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).

M&A activity recorded seven deals totalling $4.1 billion, reflecting a 1,234 per cent increase in value compared to Q2. Cross-border transactions accounted for 71 per cent of 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 drop in value compared to Q2. Seventy per cent of these deals were under $10 million.

Mobility-as-a-Service (MaaS) continued to dominate PE deal flow, accounting for nearly 80 per cent of total PE value.

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

Public market activity remained subdued in Q3 2025, with no major IPOs or QIPs recorded. However, investor focus remains high on the anticipated Toyota IPO in 2026, which is expected to reshape investment flows and reinvigorate sectoral interest.

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