India's automotive sector clocks $717 million deals in Q2: Report
New Delhi, July 13
India's automotive sector recorded 20 overall deals worth $717 million in Q2 2026, with deal values remaining largely strong, a report said on Monday.
The report from Grant Thornton Bharat said overall deal values eased marginally by 4 per cent sequentially, as capital remained concentrated in a few high-value transactions across mobility platforms, automotive technology and public market fundraisers.
Mobility-as-a-Service led overall sector deal values with $298 million, driven by continued investor interest in scalable mobility platforms.
Excluding public market activity, the sector recorded 18 M&A and PE/VC transactions worth $479 million, with investors continuing to back technology-led mobility businesses, electrification and EV ecosystem enablers amid a more selective investment environment.
Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat, said that deal activity eased during the quarter as investment remained focused on businesses driving the future of mobility.
"We are seeing continued interest in EVs, mobility platforms and automotive technologies, with investors becoming more selective and backing companies that have demonstrated scale, differentiated capabilities and a clear growth path. As the sector evolves, technology-led investments are expected to continue shaping deal activity," Mehra said.
M&A activity remained selective in Q2 2026, with five deals worth $138 million, as investors prioritised technology-led capability building over scale-driven acquisitions.
Auto Tech accounted for 87 per cent of M&A value, highlighting growing strategic investments in software, cybersecurity and connected mobility capabilities.
Despite lower deal volumes, average deal size increased significantly, reflecting a focus on high-value, technology-driven transactions.
PE/VC activity moderated during the quarter, recording 13 deals worth $341 million, with investors remaining selective amid a challenging funding environment. Capital continued to flow towards scalable mobility platforms and the EV ecosystem.
Electric Vehicles (EVs) dominated PE deal volumes, accounting for 54 per cent of PE transactions, reflecting sustained momentum in the electrification ecosystem.
— IANS
Reader Comments
Interesting numbers but one must ask: are these deals creating enough jobs on the ground? With Auto Tech taking 87% of M&A value, the focus seems to be on software and cybersecurity rather than manufacturing. We need both - world-class tech AND manufacturing jobs for our youth. Otherwise, it's just another IT story in disguise.
The EV ecosystem momentum is impressive. India's electrification story has global implications, especially with supply chain diversification. The report mentioning 'selective investment environment' actually seems healthy - it means capital is going to quality, sustainable businesses. This disciplined approach will serve the sector well long-term.
While these numbers are encouraging, I'm skeptical about the hype around 'mobility platforms.' Many such startups burn cash with unclear paths to profitability. India needs sustainable businesses, not just valuations. And please, can we see more deals focused on public transport solutions? Our cities are choking with traffic! 🚦
EV accounting for 54% of PE deals is the real takeaway here. Our government's FAME scheme and state-level EV policies are finally showing results. But with GST still high on EVs and charging infrastructure lagging, we need more policy push. The private sector investing is good, but government must ensure the ecosystem develops evenly.
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