Auto deal count hits three-year low, but investors pump $717 million into EVs, mobility tech in Q2: Grant Thornton Bharat

India’s automotive dealmaking slowed sharply in the second quarter of 2026, with transaction volumes falling to their lowest level in three years. Yet, investment activity remained resilient as investors continued to deploy capital into electric vehicles (EVs), mobility platforms and automotive technology, according to Grant Thornton Bharat’s latest Automotive Dealtracker.

The sector recorded 20 deals worth USD 717 million during the April-June quarter. While overall deal volume dropped to its lowest level since Q2 2023, deal values declined only 4% sequentially as capital remained concentrated in a handful of high-value transactions across mobility platforms, automotive technology and public market fundraises.

Investors chase scale, technology and profitability

Excluding public market activity, the sector saw 18 M&A and private equity/venture capital (PE/VC) transactions worth USD 479 million. Investors remained selective amid an uncertain funding environment, favouring companies with proven scale, differentiated technology and clear growth visibility over broad-based bets.

“While deal activity slowed during the quarter, investment remained focused on businesses driving the future of mobility. We are seeing continued interest in EVs, mobility platforms and automotive technologies, with investors becoming more selective and backing companies that have demonstrated scale, differentiated capabilities and a clear growth path. As the sector evolves, technology-led investments are expected to continue shaping deal activity,” said Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat.

Rapido, KPIT lead marquee transactions

Private equity activity accounted for 13 deals worth USD 341 million, led by Rapido’s USD 240 million fundraise—the quarter’s biggest transaction—followed by JBM Ecolife Mobility’s USD 47 million investment. Meanwhile, M&A activity remained selective with five deals worth USD 138 million. KPIT Technologies’ USD 120 million acquisition of Israel-based Cymotive Technologies alone contributed 87% of total M&A value, underscoring rising demand for automotive cybersecurity, software-defined vehicles and connected mobility capabilities. Average M&A deal size also jumped to USD 28 million from USD 6 million in the previous quarter.

Mobility-as-a-Service emerged as the biggest contributor to deal value at USD 298 million, while EVs accounted for 54% of PE deal volumes. Auto technology made up 87% of M&A value, and the top five PE deals contributed nearly 96% of overall PE value, highlighting investors’ preference for category-leading businesses.

Policy support to keep long-term momentum intact

Grant Thornton Bharat expects policy support for manufacturing, localisation and clean mobility, along with the India-UK Comprehensive Economic and Trade Agreement (CETA), to boost cross-border collaboration in automotive manufacturing, engineering and technology. However, supply-chain resilience, critical mineral security and the industry’s transition towards software-defined and electrified vehicles are expected to remain key drivers of investment decisions.