India’s automotive sector recorded fewer deals in Q2 2025, but with significantly larger investment sizes, according to the latest Automotive Dealtracker report by Grant Thornton Bharat. The industry registered 29 transactions valued at $1.3 billion, including public market activity. Excluding IPOs and QIPs, there were 28 deals worth $946 million.

Although total deal values dropped 36 per cent quarter-on-quarter, they more than doubled compared to Q2 2024. This resulted in the average deal size increasing from $17 million to $34 million. The report attributes the trend to a shift toward high-value investments in autotech and Mobility-as-a-Service (MaaS) platforms. Electric vehicles (EVs) accounted for 34 per cent of deal volumes and 39 per cent of deal values.

Saket Mehra, Partner and Automotive Industry Leader at Grant Thornton Bharat, said, “The Indian auto industry is in a phase of strategic transformation—balancing policy shifts, global trade developments, and rising investor appetite for sustainable mobility solutions.”

The mergers and acquisitions (M&A) landscape saw 8 deals totalling $305 million, an 11 per cent decline in volume and 15 per cent drop in value from the previous quarter. Domestic consolidations formed the bulk of deal volumes, but the largest transaction was outbound—KPIT Technologies' $191 million acquisition of Caresoft Global, which accounted for 63 per cent of total M&A value.

GT Bharat's report noted a growing emphasis on digital mobility platforms, EV-ready component integration, and connected vehicle technologies. The electric three-wheeler and commercial vehicle segments also remained active.

Private equity (PE) activity remained stable with 20 deals totalling $641 million. While the absence of billion-dollar transactions, such as Erisha E Mobility’s fundraise in Q1, led to a 43 per cent decline in value, the report notes a fivefold increase in investment value when adjusted for that outlier.

The quarter’s notable PE deal was a $275 million investment in Greenline Mobility Solutions. MaaS platforms attracted $458 million across logistics, finance, and ride-hailing. Investors continued backing full-stack digital platforms, recurring revenue models, and EV ecosystem enablers such as charging networks.

The public markets recorded a single IPO—Ather Energy—which raised $343 million at a revised valuation of $1.4 billion. The company aims to utilise the capital for product development, battery research, and expansion of retail and manufacturing. QIP activity remained subdued.

Despite the limited public listings, Grant Thornton Bharat’s report suggests that investor sentiment toward India’s clean mobility sector remains strong, with continued interest in capital-efficient, scalable business models.