The Indian automotive sector registered transactions totaling $717 million USD during the quarter from April to June 2026. Despite the decline in overall transaction volume to its lowest in three years, a more selective investment environment is observed, with capital concentrating in enterprises related to electric vehicles (EV) and mobility, as well as in automotive technologies.
During this quarter, the industry recorded 20 mergers and acquisitions (M&A), private equity (PE), and public market deals. Although the number of deals decreased compared to the previous quarter, the total value of the deals fell by only 4% sequentially, indicating that investors continue to support fewer, but larger and higher-quality transactions.
Excluding public market activity, the sector conducted 18 M&A and PE/Venture Capital (VC) deals worth $479 million. These investments were concentrated in companies involved in mobility platforms, automotive technologies, and participants in the EV ecosystem. Saket Mehra, Partner and Head of Auto and EV industry at Grant Thornton Bharat, noted that while activity slowed down, investments remained focused on businesses shaping the future of mobility.
He added that interest remains high in EVs, mobility platforms, and automotive technologies, as investors are becoming more discerning and supporting companies that have demonstrated scale, differentiated capabilities, and a clear growth path. As the sector evolves, technologically oriented investments are expected to continue driving deal activity.
M&A activity remained moderate, recording five deals worth $138 million. The largest acquisition was the purchase of Israeli-based Cymotive Technologies by KPIT Technologies for $120 million, highlighting the growing strategic importance of automotive cybersecurity, software-defined vehicles, and connected mobility. Despite the lower volume of deals, the average deal size significantly increased as companies prioritized building technological capabilities over scale expansion.
Private equity and venture capital activity also slowed, amounting to 13 deals worth $341 million. Funding was concentrated in several large transactions, the largest of which was Rapido's $240 million funding round, followed by an investment in JBM Ecolife Mobility of $47 million. This trend reflects sustained investor confidence in scalable mobility platforms and enterprises driving the next phase of electrification.
The Mobility-as-a-Service segment was the largest by value, attracting $298 million in investments. EVs accounted for 54% of the PE deal volume, indicating continuous investor interest in India's electrification ecosystem. Automotive technologies captured 87% of the total M&A value, as companies increased investments in software, cybersecurity, and connected mobility capabilities.
According to Grant Thornton Bharat data, five leading PE deals accounted for nearly 96% of the total PE investment amount for the quarter, reflecting investors' preference for category-leading companies with proven scale and clearer growth prospects amid tightening financing.
