India’s automotive sector witnessed 20 deals totaling $717 million in the second quarter of 2026, as per a report by Grant Thornton Bharat. Deal values, although strong, saw a slight 4% sequential decrease, primarily due to capital being concentrated in high-value transactions across mobility platforms, automotive technology, and public market fundraisers.
The Mobility-as-a-Service segment led the sector in deal values, reaching $298 million, fueled by sustained investor interest in scalable mobility platforms. Excluding public market activities, the sector saw 18 mergers and acquisitions (M&A) and private equity/venture capital (PE/VC) transactions amounting to $479 million. Investors continued to support technology-driven mobility businesses, electrification, and electric vehicle (EV) ecosystem enablers in a more discerning investment landscape.
Saket Mehra, Partner and Auto & EV Industry Leader at Grant Thornton Bharat, noted a slowdown in deal activity during the quarter, with investments primarily directed towards businesses shaping the future of mobility. Mehra highlighted the ongoing investor interest in EVs, mobility platforms, and automotive technologies, emphasizing the importance of scale, unique capabilities, and clear growth trajectories for companies. He also mentioned that technology-focused investments are expected to drive future deal activities in the sector.
In Q2 2026, M&A activity remained selective, with five deals amounting to $138 million, showcasing a preference for technology-driven capability enhancement over scale-driven acquisitions. Auto Tech accounted for 87% of the M&A value, indicating a rise in strategic investments in software, cybersecurity, and connected mobility capabilities. Despite a decrease in deal volumes, the average deal size notably increased, underscoring a shift towards high-value, technology-centric transactions.
Private equity and venture capital activity moderated in the quarter, recording 13 deals totaling $341 million. Investors maintained a selective approach amidst a challenging funding environment, directing capital towards scalable mobility platforms and the EV ecosystem. Electric Vehicles (EVs) dominated the PE deal volumes, representing 54% of PE transactions and reflecting the sustained momentum in the electrification ecosystem.
