Autobayng News Team
Investments were concentrated in electric vehicles, with 11 deals valued at about $448 million, and mobility services, with nine deals valued at about $210 million.” fetchpriority=”high”>
India’s automotive and electric vehicle sector recorded 35 deals valued at $745 million in the January–March quarter of 2026, with volumes largely unchanged from the previous quarter, according to a report by Grant Thornton Bharat.
It added that deal volumes stood at 35 compared with 34 in Q4 2025, while values declined from $837 million. The report noted the absence of large cross-border and scale-led transactions during the quarter. There were no initial public offerings or qualified institutional placements.
Outbound deal values declined to $10 million in Q1 2026 from $4,064 million in Q3 2025, indicating a moderation in overall deal values. Investment activity continued in areas such as electric mobility, mobility platforms and related infrastructure.
“India’s auto and EV sector is entering an inflection point, driven by improving domestic demand, accelerating electrification, and a growing focus on supply-chain resilience amid evolving geopolitical dynamics. Policy support continues to strengthen the EV ecosystem, particularly across energy storage and infrastructure,” said Saket Mehra, Partner and Auto and EV Industry Leader, Grant Thornton Bharat.
He added that against this backdrop, deal activity remains focused on future-ready themes, with investors prioritising electrification, mobility platforms, and ecosystem enablers such as charging, swapping, and battery technologies.
Private equity activity leads deal-making
Private equity activity accounted for 28 deals valued at $702 million in Q1 2026, compared with 25 deals worth $377 million in the previous quarter. The increase reflects higher deal values and volumes within this segment.
Investments were concentrated in electric vehicles, with 11 deals valued at about $448 million, and mobility services, with nine deals valued at about $210 million. Activity also continued in auto-technology segments.
Key transactions included investments by KKR in PMI Electro Mobility Solutions and Allfleet India, along with funding rounds in GreenCell Mobility and Drivn Transition.
M&A activity declines
Mergers and acquisitions activity remained limited, with seven deals valued at $43 million, compared with nine deals worth $460 million in Q4 2025. The report attributed the decline to the absence of large strategic and cross-border transactions.
Deal-making was driven by smaller acquisitions focused on capabilities. Domestic transactions accounted for four deals, with two outbound deals recorded. Cars24 completed two domestic acquisitions of auto-technology companies Vehicleinfo and Carinfo during the quarter.
Sector trends
The report highlighted a shift towards smaller transactions focused on technology, platforms and related capabilities. It noted continued interest in digital platforms covering vehicle ownership, servicing and resale.
Electric vehicles remained a focus area for investors, along with battery technologies, charging infrastructure and fleet-based mobility models. Investment activity was concentrated in selected larger deals alongside early-stage participation.
Traditional segments, including auto components and heavy vehicles, saw limited deal activity during the quarter.
