India’s auto sector accelerates deal growth with $1.5 billion in Q1 2025

• NEW DELHI — India’s automotive and mobility sector saw 29 deals valued at $1.5 billion in the January-March quarter (Q1) this year, a report showed on Thursday.
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• Excluding IPOs and QIPs, the sector recorded a 27 per cent rise in volumes — from 22 in Q4 2024 to 28 — and a remarkable 191 per cent surge in values, from $509 million to $1.4 billion, according to a Grant Thornton Bharat report.
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• This growth was driven by a mix of strategic and financial investments, including a marquee billion-dollar private equity deal, and heightened interest across emerging segments such as electric vehicles (EVs), autotech and Mobility as a Service (MaaS).
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• The presence of one-billion-dollar transaction and three high-value deals ($50 million) reflects the sector’s continued attractiveness to investors.

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• “India’s automotive and mobility sector is undergoing a pivotal transformation, driven by electrification, digital integration and a rising focus on sustainability. Despite evolving global trade dynamics and supply chain headwinds, investor confidence remains strong, reflected in the sharp rise in deal volumes and values this past quarter,” said Saket Mehra, Partner and Auto Industry Leader at Grant Thornton Bharat.
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• To stay competitive, Indian players must double down on innovation, strategic partnerships and value-added offerings, particularly in areas like EVs, auto components and next-gen mobility solutions, he mentioned.
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• The M&A landscape in India’s automotive and mobility sector continued its upward trajectory in Q1 2025, recording 9 deals worth $359 million.
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• This marks the third consecutive quarter of growth, driven largely by domestic consolidations aimed at enhancing localisation and aligning product portfolios.
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• While inbound activity saw a revival with Italy-based Fontana Gruppo acquiring a 60 per cent stake in Right Tight Fasteners for USD 115 million, outbound activity remained muted.
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• Domestic transactions dominated the space, with the average deal size jumping from $5 million in the previous quarter to $31 million.
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• Private equity and venture capital activity in India’s automotive and mobility sector witnessed robust growth in Q1 2025, with 19 deals totalling $1.12 billion. This represents a six-fold (500 per cent) surge in deal values and a 36 per cent increase in volumes over the previous quarter.