India’s automotive and electric vehicle (EV) sector witnessed a steady but cautious start to 2026, with deal activity remaining selective despite improving investor confidence. According to Grant Thornton India’s latest DealTracker report, the industry recorded 35 deals worth US$745 million in the January-March quarter, largely in line with the 34 deals seen in Q4 2025. However, the absence of large cross-border and scale-driven transactions reduced the total deal value to US$837 million in the last quarter.There was no activity in the public markets, including IPOs or QIPs, during the quarter, indicating a more measured investment approach. The sharp decline in outbound deal values (from US$4,064 million in Q3 2025 to just US$10 million in Q1 2026) also points to a normalization phase, even as investments continued to flow into electrification and mobility-focused platforms.
Merger and acquisition (M&A) activity remained slow, with only seven deals worth US$43 million. This saw a 22 percent decline in volume and a massive 91 percent decline in value compared to the previous quarter. Most of the deals were small, capacity-driven acquisitions, largely domestic in nature.However, private equity (PE) emerged as the key driver of deal activity. There were 28 PE deals worth US$702 million in the quarter, up 12 per cent in volume and 86 per cent in value compared to Q4 2025. Investments were heavily tilted towards EVs, with 11 deals worth about US$448 million, followed by mobility-as-a-service with nine deals worth about US$210 million. Meanwhile, traditional automotive segments remained relatively quiet as the industry continues its transition toward electrification.
(TagstoTranslate)India Automotive Sector(T)Electric Vehicle Investments 2026(T)Grant Thornton India DealTracker(T)EV Market Trends 2026(T)Private Equity Deals India(T)Electric Vehicle Sector Growth(T)M&A Activity India(T)Mobility as a Service India(T)Investor Confidence India Automotive
