India’s automotive sector records $1.5 b in deals in Q1 2025

Source: Grant Thornton Bharat

India’s automotive and mobility sector put up a strong show in Q1 2025, recording 29 deals worth $1.5 billion, according to the latest Automotive Dealtracker by Grant Thornton Bharat. This include private equity, venture capital and M&A deals.

While overall deal value dipped 63 per cent from the previous quarter (December 2024), largely due to the absence of Hyundai Motor’s $3.6 billion IPO, core activity remained resilient. Excluding IPOs and QIPs, the sector saw deal volumes climb from 22 to 28 and values soar 191 per cent quarter-on-quarter, from $509 million to $1.4 billion.

The period saw a blend of strategic and financial investments, including a billion-dollar private equity deal and rising investor interest in emerging areas like electric vehicles (EVs), autotech, and Mobility as a Service (MaaS). The quarter featured one billion-dollar transaction and three deals exceeding $50 million, it said.

Investor confidence

“Despite global trade shifts and supply chain pressures, investor confidence remains robust — as seen in the sharp uptick in deal volumes and values this quarter. To maintain a competitive edge, Indian companies must accelerate innovation, forge strategic partnerships, and focus on value-added offerings, especially in EVs, auto components, and next-generation mobility solutions,” said Saket Mehra, Partner and Auto Industry Leader at Grant Thornton Bharat.

PE and VC deal activity was particularly strong, with 19 deals for a total value of $1.12 billion. A standout transaction was a $1 billion investment in Erisha E Mobility from a UAE-based investor, which spurred a six-fold increase in PE/VC deal values compared to the previous quarter.

Mergers and acquisitions

Mergers and acquisitions remained active, with nine deals totalling $359 million. This marked the third consecutive quarter of growth, buoyed by a wave of domestic consolidations and rising average deal sizes.

Capital market activity was subdued with no IPOs during the quarter—following Hyundai Motor’s record-setting $3.6 billion IPO in Q4 2024. However, PMI Electro managed to raise $29 million through a Qualified Institutional Placement (QIP), targeting advancements in innovation, production, and scaling.

Published on April 17, 2025