The automobile industry in India experienced its lowest quarterly transaction volumes in three years, totaling USD 717 million in Q2 2026, according to Grant Thornton Bharat’s latest automobile Dealtracker.
According to the report, deal values were generally solid in Q2 2026 despite transaction volumes dropping to their lowest quarterly level since Q2 2023.
In Q2 2026, the automotive industry in India saw 20 transactions totaling USD 717 million. As capital remained concentrated in a few high-value transactions spanning mobility platforms, automotive technologies, and public market fundraises, overall deal values decreased somewhat by 4 percent quarter over quarter.
Saket Mehra, Grant Thornton Bharat Partner and Auto & EV Industry Leader, said “while deal activity slowed during the quarter, 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,” Mehra further added.
According to Mehra, technology-led investments are anticipated to continue affecting deal activity as the industry develops. As per the report, the automotive industry recorded 18 M&As (mergers and acquisitions) and PE/VC (private equity/venture capital) transactions worth USD 479 million, excluding public market activity. Despite a more selective investment environment, investors continued to support technology-led mobility companies, electrification, and EV ecosystem enablers.
It also stated that investors prioritised technology-led capability building over scale-driven acquisitions, so M&A activity remained selective during the quarter, with five purchases totaling USD 138 million. The USD 120 million acquisitions of Israel-based Cymotive Technologies by KPIT Technologies topped the quarter, demonstrating the increasing strategic significance of software-defined vehicles, linked mobility and automotive cybersecurity.
The average deal size climbed dramatically, indicating a concentration on high-value, technology-driven transactions despite decreased deal volumes, the report stated. PE/VC activity decreased during the quarter, with 13 deals totaling USD 341 million. Investors continued to exercise caution in the face of a difficult funding climate, it further added.
The largest deal of the quarter, Rapido’s USD 240 million fundraising, was followed by JBM Ecolife Mobility’s USD 47 million investment, as capital continued to flow towards scalable mobility platforms and EV ecosystem players. Furthermore, the pattern demonstrates ongoing investor confidence in companies spearheading the next stage of mobility and electrification.
Also read: Auto industry posts record retail sales in April
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