According to the latest report of Grant Thornton India, India’s Automotive and Mobility Sector started the calendar year 2025 with firmness. The region made $ 1.5 billion deals in the January-March quarter. Despite a 63 per cent decline in the total value of deals compared to the previous quarter (Hyundai Motor India’s $ 3.6 billion IPO), the underlying investment pace was strong.
Except for IPO and eligible institutional planning (QIP), the volume of deals rose from 22 per cent in the fourth quarter of 2024 to 28 per cent in the first quarter of 2025, while the value increased from $ 50.9 million to $ 191 per cent to $ 1.4 billion. The growth was strengthened by strategic acquisitions and financial investments, including a private equity deal of one billion dollars and three high-value transactions worth over 5 million dollars.
Grant Thornton India partner and auto industry leader Saket Mehra said, India’s automotive and mobility sector is going through a change, which is the increasing focus on electrification, digital integration and stability. Despite the challenges of global trade uncertainty and supply chain, investors have better confidence. In order to remain competitive, Indian companies will have to pay double attention to innovation, partnership and next generation mobility offers. The pace of merger and acquisition continued, with nine deals of $ 35,9 million, which shows an increase in the third consecutive quarter. Domestic consolidation was dominated with the aim of strengthening localization in the M&A landscape and re -organizing the product portfolio.
Minda Corporation’s 49 per cent stake in Flash Electronics India for $ 16.1 million was the main attraction. Acquisition of 60 per cent stake in right -tight fasteners by Fontana Ghoos in Italy for $ 11.5 million was a rare but notable step while activities outside the country were weak. In the last quarter, the average size of deals increased from $ 5 million to $ 3.1 million, with the leading three deals contributed about 94 per cent to the total M&A price.
Most of the merger and adornment activities focused on the electric vehicle (EV) ecosystem, including battery management and energy storage solutions and consolidation in the commercial EV region. Private equity and enterprise capital (PE/VC) investment also recorded a strong quarter with $ 1.12 billion deals and shows a six -fold rise in price and 36 per cent increase in the price and a 36 per cent increase. This boom came to a large extent in investment of $ 1 billion by UAE based investor in Erisha E-Mobility Private Limited.
First Published – April 17, 2025 | 10:33 pm IST
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