India auto sector deals Q3: 33 deals, $1.7 billion

India auto sector deals Q3 activity surged in the July to September quarter, with the automotive sector recording 33 deals worth USD 1.7 billion, according to Grant Thornton Bharat's Auto Dealtracker. Deal volumes rose 65 per cent and deal value rose 131 per cent from 20 deals worth USD 717 million in the April to June quarter, marking a sharp rebound in investment across the industry. The Federal, Financial Express and IANS reported the Dealtracker findings.

The India auto sector deals Q3 numbers show EV-related businesses accounted for 54 per cent of overall deal activity. Capital flowed into EV makers, battery technologies, charging infrastructure, mobility platforms and automotive technology companies. The data shows EV deal activity spreading beyond vehicle makers into the wider ecosystem. The 54 per cent EV share underlines how central electric mobility has become to auto investment.

India auto sector deals Q3: mergers and acquisitions

Mergers and acquisitions totalled 12 deals worth USD 389 million in the quarter, up from five deals worth USD 138 million in the previous quarter. Hero MotoCorp's cumulative USD 285 million investment in Ather Energy accounted for nearly 73 per cent of total M&A deal value, making the Ather Energy transaction the quarter's dominant deal. The quarter's M&A value of USD 389 million was nearly three times the USD 138 million recorded in the April to June quarter. Domestic transactions accounted for 75 per cent of deal volumes and 87 per cent of deal value in the India auto sector deals Q3 tally.

Private equity and venture capital activity also picked up, with 16 deals worth USD 419 million in the quarter against 13 deals worth USD 341 million in the previous quarter. River Mobility raised USD 120 million, Ultraviolette Automotive raised USD 85 million and Yulu raised USD 63 million. The River Mobility round was the largest of the three. Together they made up nearly 64 per cent of the quarter's PE and VC value. All three rounds went to electric mobility companies, matching the quarter's EV-led pattern.

India auto sector deals Q3: IPOs and public raises

The quarter also saw two IPOs and three qualified institutional placements, which raised USD 846 million combined. IPOs brought in USD 428 million and QIPs added USD 418 million, giving the India auto sector deals Q3 total a public markets leg alongside the private deal flow. The public raises added a third leg to the quarter. M&A contributed USD 389 million and PE/VC USD 419 million, while the IPOs and QIPs together raised more than both. The USD 846 million from IPOs and QIPs exceeded the combined M&A and PE/VC value of USD 808 million for the quarter.

Saket Mehra, Partner and Automotive & EV Industry Leader at Grant Thornton Bharat, said: "The automotive sector is entering a new investment cycle, fundamentally transformed by mobility itself. Capital is no longer concentrated only on vehicle manufacturers but is increasingly being deployed across the broader ecosystem, including batteries, charging infrastructure, automotive technology and mobility platforms."

The comment captures how the India auto sector deals Q3 cycle differs from earlier investment waves, which centred on vehicle makers.

What the EV-led quarter means

For the industry, the India auto sector deals Q3 rebound shows investors backing the full chain, from batteries to finished vehicles. Domestic capital drove most of the activity, with home-grown deals making up three quarters of volumes and nearly nine tenths of value. Whether the pace holds will depend on how quickly funded companies scale production and charging networks through the rest of the year.

With EV deal activity driving more than half of all transactions and public markets contributing USD 846 million, the India auto sector deals Q3 quarter closed with strong numbers across M&A, private equity and public raises. The next quarter will show whether the momentum carries into the final three months of 2026.