India’s automotive sector recorded 33 deals worth a combined $1.7 billion in the third quarter of 2026, according to a Grant Thornton Bharat report released on October 21. The figure includes mergers and acquisitions, private investment, and capital raising in public markets.
The number of deals rose 65% from the previous quarter, when 20 were recorded, while their value increased 131% from the $717 million registered between April and June.
Electrification draws investment
Mergers and acquisitions, along with private equity and venture capital transactions, totaled 28 deals worth $808 million. Within that group, M&A activity reached 12 deals valued at $389 million, compared with five worth $138 million in the second quarter. Domestic transactions accounted for 75% of volume and 87% of value in this segment, according to the report.
Private equity and venture capital activity rose to 16 deals worth $419 million, compared with 13 worth $341 million in the previous quarter. Both the number and value of transactions increased 23%.
Grant Thornton Bharat identifies electrification as the main focus of investment. Capital flowed to electric-vehicle manufacturers, battery technologies, charging infrastructure, mobility platforms, automotive technology companies, and component manufacturers. The consultancy said investors prioritized companies with scalable business models, differentiated technology, and an established position within India’s mobility ecosystem.
