Kamal Ghorui
India’s automotive and electric vehicle (EV) sector saw a steady but cautious start to 2026, with deal activity remaining selective despite improving investor confidence. According to Grant Thornton Bharat’s latest Dealtracker report, the industry recorded 35 deals worth USD 745 million in the January–March quarter, largely in line with the 34 deals seen in Q4 2025. However, total deal value declined from USD 837 million in the previous quarter due to the absence of large cross-border and scale-driven transactions.There was no activity in public markets during the quarter, including IPOs or QIPs, indicating a more measured investment approach. A sharp fall in outbound deal values (from USD 4,064 million in Q3 2025 to just USD 10 million in Q1 2026) also points to a normalisation phase, even as investments continued to flow into electrification and mobility-focused platforms.
Mergers and acquisitions (M&A) activity remained subdued, with just seven deals worth USD 43 million. This marked a 22 per cent drop in volumes and a steep 91 per cent fall in value compared to the previous quarter. Most deals were small, capability-driven acquisitions, largely domestic in nature.Private equity (PE), however, emerged as the key driver of deal activity. The quarter saw 28 PE deals valued at USD 702 million, up 12 per cent in volume and 86 per cent in value compared to Q4 2025. Investments were heavily skewed towards EVs, which accounted for 11 deals worth around USD 448 million, followed by mobility-as-a-service with nine deals worth approximately USD 210 million. Traditional automotive segments, meanwhile, remained relatively muted as the industry continues its transition towards electrification.
