Auto Sector Deal Activity Hits $717 Million in India

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.