India’s automotive and EV sector witnessed 35 deals worth $745 million in the first quarter of 2026, indicating a stable yet selective deal environment, according to a report by Grant Thornton Bharat. Deal volumes remained mostly unchanged, with values decreasing from $837 million in the previous quarter. The decline in values was attributed to the absence of large cross-border and scale-driven transactions, including zero IPO or QIP activity during the quarter.
The report highlighted a significant drop in outbound deal values, reaching $10 million in Q1 2026 compared to $4,064 million in Q3 2025. This shift suggests a normalization in overall deal values, with a continued focus on investments in electrification, mobility platforms, and enabling infrastructure. Private equity (PE) activity played a crucial role in deal-making during the quarter, with 28 deals valued at $702 million, marking a 12% increase in volumes and an 86% surge in value.
Investors and acquirers maintained a disciplined approach to deal-making, emphasizing risk-adjusted, scalable opportunities. Saket Mehra, Partner and Auto and EV Industry Leader at Grant Thornton Bharat, noted that India’s auto and EV sector is at a turning point, driven by rising domestic demand, accelerated electrification, and a growing emphasis on supply-chain resilience amidst changing geopolitical dynamics. Policy support, particularly in energy storage and infrastructure, is strengthening the EV ecosystem, leading deal activity to focus on future-ready themes such as electrification, mobility platforms, and ecosystem enablers like charging and battery technologies.
Mergers & Acquisition (M&A) activity was subdued in Q1 2026, with 7 deals totaling $43 million, reflecting a 22% decline in volumes and a significant 91% drop in value. The report highlighted that deal activity primarily involved small-ticket, capability-led acquisitions, with a focus on technology, digital capabilities, and ecosystem adjacency. Domestic deals dominated the landscape, with limited outbound activity observed.
