New Delhi: India’s auto industry just delivered one of its boldest quarters in recent memory, and it is not just because of a single megadeal. According to the Grant Thornton Bharat Q3 2025 Automotive Dealtracker report, the sector clocked transactions worth USD 4.6 billion (₹39,100 crore), powered by aggressive global acquisitions, rising electric mobility investments and a visible shift towards next-generation automotive technologies.
What stood out most was the shift in mood. This was not a sector reacting to market pressure but one actively placing big, future-centric bets, especially in electrification, digital engineering and global expansions. Even as the festive season increases domestic retail demand, the real action is happening at boardroom tables and venture capital meetings.
Record Quarter Driven by Bold Global Moves
The highlight of the quarter was Tata Motors’ USD 3.8 billion (₹32,300 crore) outbound acquisition of Italy’s Iveco S.P.A., one of the biggest ever automotive deals by an Indian company. This single move contributed to nearly 95 percent of the M&A value. The report indicates that cross-border consolidation is now central to growth strategies, with 71 percent of deal volumes tied to international opportunities.
Other players followed suit. Samvardhana Motherson International closed three outbound acquisitions this quarter, reinforcing India’s presence in global supply chains. Tata Technologies also acquired Es-Tec GmbH in Germany for USD 88.2 million (₹750 crore), strengthening its expertise in digital engineering and ADAS technologies commonly used in electric and autonomous vehicles.
EVs and Mobility Tech Drive Private Investments
Private equity investors stayed active, closing 23 deals worth USD 531 million (₹4,500 crore). While deal values dipped from the previous quarter, the number of investments went up, showing rising interest in early-stage, high-growth auto-tech ventures.
- Mobility-as-a-Service (MaaS) dominated investor focus, with Rapido raising USD 271 million (₹2,300 crore).
- IFC-backed funding of USD 137 million (₹1,160 crore) into electric bus makers JBM Ecolife and GreenCell Mobility is expected to deploy 4,000 e-buses across 39 cities. This could reduce over 1.6 billion kg of CO2 emissions and generate more than 12,000 new jobs.
- EV startups such as Ultraviolette Automotive raised USD 21 million (₹178 crore) to scale its high-performance F77 electric motorcycle platform.
These investments show how India is not just participating in the EV race, but setting up to lead in electric fleets, urban transport and next-gen automotive tech.
Key Trends Emerging in Q3
- Global expansion is the new growth engine: Indian companies are no longer limited to domestic consolidation. They are looking westward for technology and market access.
- Clean mobility is now mainstream investment: EV buses, charging components and fleet electrification are attracting consistent capital.
- Tech integration into vehicles is gaining ground: ADAS, telematics and digital engineering services are becoming core acquisition targets.
- Supply chain recalibration: Domestic and inbound investments are focused on parts manufacturing and insulation technologies for cold chain logistics.
IPO Buzz Ahead
The public market remained quiet this quarter, with no major IPOs hitting the exchanges. However, anticipation is rising over the planned Toyota IPO in 2026, which analysts say could become one of India’s most-watched listings in the automotive space.
What Lies Ahead
The report notes that with GST 2.0 reforms, tariff adjustments and festive demand lining up, the sector could see sustained momentum through 2026. The rise of clean mobility, combined with India’s ambition to become a global supply chain powerhouse, signals that the next wave of automotive growth will be defined not just by cars on roads, but by technology, electrification and strategic M&A.