Auto sector records strongest quarter with transactions valued at $4.6 billion: Grant Thornton
India’s automotive sector recorded its strongest quarter in over a year, with 30 transactions valued at $4.6 billion.
According to the Grant Thornton Bharat Q3 2025 Automotive Dealtracker report, while deal volumes remained consistent with the previous quarter, values surged sharply, largely driven by Tata Motors’ $3.8 billion acquisition of Iveco S.P.A., marking one of India’s largest outbound automotive transactions to date.
Excluding this deal, values dipped 36 per cent over the last quarter, signalling that large strategic bets continue to define overall deal momentum, it 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 research and advisory firm said.
While mergers and acquisitions (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.
M&A activity surged in Q3 2025, with seven deals valued at $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.
The top M&A deal was Tata Motors CV Holdings PTE Ltd’s acquisition of Iveco S.P.A. for $3.7 billion, which contributed 95 per cent of total M&A value, underlining India’s strategic global ambitions in the commercial mobility space, the report highlighted.
“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.
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,” Saket Mehra, Partner and Automotive Industry Leader, Grant Thornton Bharat, said.
As policy tailwinds and festive demand converge, the firm anticipated sustained momentum across alternative fuel technologies, auto-tech, and supply chain digitisation.
Published on October 22, 2025
