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The deal value of India's automotive sector reached $4.6 billion through 30 transactions in the period of July-September (Q3) 2025, thus marking the most dynamic quarter in more than a year, a report by Grant Thornton Bharat said on Wednesday.

The major factor behind the surge was mainly Tata Motors' $3.8 billion purchase of Iveco S.P.A., which represented 95 per cent of the total mergers and acquisitions (M&A) value in Q3 2025, as stated in the Grant Thornton Bharat Automotive Dealtracker Q3 2025 report.

According to the report, the quarter reflected a strategic pivot toward global expansion, electrification, and supply chain recalibration, as both strategic acquirers and private investors intensified focus on future-ready mobility platforms.

Deal volumes stayed the same as in the previous quarter, but values rose because of the outbound Tata Motors acquisition.

"While volumes remained consistent around 30 deals, the sector posted its highest-ever quarterly deal values, largely driven by Tata Motors’ USD 3.8 billion acquisition of Iveco S.P.A. Barring this deal, values declined 36 per cent compared to the previous quarter," the report said.

While M&A activity was mainly through cross-border consolidation plays, the private equity (PE) interest was stable in scalable and technology-enabled segments like electric mobility, fleet electrification, and Mobility-as-a-Service (MaaS).

The M&A activity comprised seven deals alone worth $4.1 billion, which was a remarkable gain of 1,234 per cent as compared to Q2. Besides, 71 per cent of the volume and 99 per cent of the value in cross-border transactions were registered.

"M&A was led by cross-border deals across Asia and Europe, dominated by outbound transactions with 5 out of 7 deals, contributing 71 per cent of the volumes and 99 per cent of the values. Notably, Samvardhana Motherson International executed three outbound acquisitions," the report added.

Among the private equity activities were 23 deals that totalled $531 million, which means the volume has increased by 15 per cent but the value has decreased by 17 per cent when compared to Q2. Deals that were below $10 million formed 70 per cent of the total.

Mobility-as-a-Service (MaaS) continued to be the major area of private equity interest, accounting for nearly 80 per cent of the total PE value.

Moreover, the $137 million investment in electric bus operators backed by the International Finance Corporation (IFC) has shown that investors are willing to put their money on urban electrification and multimodal transport infrastructure.

Public market activity was low during the third quarter of 2025, as there were no significant IPOs or QIPs recorded. Nevertheless, the investors' attention is still glued to the anticipated Toyota IPO in 2026, which is believed to be a game-changer for investment flows and will support the revival of interest in the respective sectors.