TL;DR
The Indian auto sector saw $1.7 billion in deals in Q3 2026, a 131% increase from Q2, with electric vehicles attracting over half of the investment activity.
India's automotive sector recorded a significant surge in deal-making activity during the third quarter of 2026 (July-September), with 33 deals totaling $1.7 billion. This represents a substantial increase from the $717 million across 20 deals observed in the previous quarter. The growth was propelled by a combination of mergers and acquisitions, private equity funding, and public-market fundraising, according to a new report by Grant Thornton Bharat.
Electric vehicles (EVs) continued to be a primary magnet for investor capital, accounting for a notable 54% of the total deal activity in Q3 2026. Investments were channeled into various facets of the EV ecosystem, including manufacturers, battery providers, charging stations, and mobility services. This sustained investor interest underscores the growing confidence in India's electric mobility transition and its potential for long-term growth across the automotive value chain.
