Auto sector sees blockbuster Q3: 30 deals worth $4.6 billion sealed; Tata Motors drives frenzy
India’s auto sector posted a blockbuster quarter in Q3 2025, with 30 deals worth $4.6 billion, its highest in over a year, according to a report. The surge was largely powered by Tata Motors’ $3.8 billion acquisition of Italian commercial vehicle maker Iveco SPA, one of the biggest outbound deals by any Indian auto company.Upon excluding the Tata-Iveco transaction, deal values actually dropped 36% as compared against the previous quarter, showing that the sector’s overall momentum still depends heavily on large strategic moves, the Grant Thornton Bharat Q3 2025 Automotive Dealtracker report said, as cited by PTI.“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,” said Saket Mehra, Partner and Automotive Industry Leader at Grant Thornton Bharat.He further added that with the combination of policy reforms and festive demand, “We anticipate sustained momentum across alternative fuel technologies, auto-tech, and supply chain digitisation.”The report highlighted that the industry is in a strategic transition, balancing government reforms, changing consumer patterns, and international expansion. Mehra noted, “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.”Q3 activity showed a clear shift toward global growth, electrification, and supply chain restructuring. Cross-border deals led the way, accounting for 71% of the volume and nearly all of the value, with Asia and Europe being the most active regions. Samvardhana Motherson International also completed three outbound acquisitions during the quarter, strengthening India’s presence in global auto supply chains.While mergers and acquisitions took the spotlight, private equity remained steady in future-ready segments like electric mobility, fleet electrification, and Mobility-as-a-Service (MaaS). Public market activity, however, remained muted, with no major IPOs or QIPs recorded in the quarter.
