India’s automotive sector recorded a record‑shattering quarter in Q3 2025, with total deal value reaching $4.6 billion across 30 transactions. It marks the strongest performance in more than a year, according to a Grant Thornton Bharat report released on Wednesday.
The headline driver was Tata Motors’ $3.8 billion purchase of Italy‑based Iveco S.P.A., which alone accounted for 95 % of every merger and acquisition (M&A) dollar that quarter. That move set the tone for a wave of cross‑border consolidation, as companies in the sector pivoted to global expansion, electrification and supply‑chain upgrades.
Deal volumes steadied from the previous quarter, but the jump in value is largely thanks to Tata Motors’ acquisition. Analysts say that electrification and future‑ready mobility platforms—especially electric vehicles, fleet electrification and Mobility‑as‑a‑Service (MaaS)—continue to attract investor interest.
In total, seven cross‑border M&A deals added up to $4.1 billion, a 1,234 % rise in value over Q2. Cross‑border contracts made up 71 % of the total number of deals and nearly every dollar in the market, reflecting the sector’s global focus.
Private‑equity activity also grew, with 23 deals worth $531 million. While the number of deals jumped 15 %, the total value dipped 17 % from Q2, largely because 70 % of these agreements were under $10 million. Still, MaaS kept dominating the PE landscape, capturing almost 80 % of the sector’s private‑equity value.
Additional funding bolstered investor confidence in urban electrification. The International Finance Corporation (IFC) backed a $137 million investment in electric bus operators, signalling support for multimodal transport infrastructure.
Public‑market activity stayed quiet in the third quarter. No major initial public offerings (IPOs) or qualified institutional placements (QIPs) appeared on the scene, though all eyes now turn to the anticipated Toyota IPO slated for 2026. That launch could reshape investment flows and reignite interest across the automotive space.
Source: ianslive
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