Tata Motors deal powers $4.6 billion surge in auto sector M&A for Q3 2025


Daijiworld Media Network - New Delhi

New Delhi, Oct 22: India’s automotive industry recorded a blockbuster quarter in Q3 2025, with deal values hitting $4.6 billion across 30 transactions, the highest in over a year, according to a report by Grant Thornton Bharat released on Wednesday.

This dramatic surge was almost entirely driven by Tata Motors’ $3.8 billion acquisition of Italy’s Iveco S.P.A., which alone accounted for 95% of the total M&A value during the July–September period. Despite the steady number of deals quarter-on-quarter, the sheer size of this outbound transaction catapulted the overall value.

The report highlighted a broader strategic shift in the auto sector, pointing to growing interest in global expansion, electrification, and supply chain realignment. Both strategic buyers and private investors are increasingly aligning with future-ready mobility platforms, especially in the electric and tech-enabled space.

Mergers and acquisitions comprised seven deals worth $4.1 billion, marking a staggering 1,234% increase in value compared to Q2. Cross-border plays led the charge, representing 71% of deal volume and 99% of deal value, underscoring the sector's global outlook.

Private equity also maintained a strong presence with 23 deals totaling $531 million, a 15% rise in volume but a 17% dip in value compared to the previous quarter. Notably, 70% of PE investments were under $10 million, indicating sustained early-stage and growth-stage interest.

Within PE activity, Mobility-as-a-Service (MaaS) continued to lead, accounting for nearly 80% of total PE value. A significant boost came from International Finance Corporation’s $137 million funding in electric bus operators, reinforcing optimism in urban electrification and multimodal transport infrastructure.

Public market activity, however, remained muted, with no major IPOs or qualified institutional placements (QIPs) recorded in the quarter. Yet, investor attention is firmly set on the anticipated Toyota IPO in 2026, which is widely expected to reshape investment trends and reignite interest in the sector.

 

  

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Title: Tata Motors deal powers $4.6 billion surge in auto sector M&A for Q3 2025



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