The Indian auto sector saw 32 deals worth $1.9 billion in the July-September 2024 period, marking its highest quarterly activity since Q4 2021, according to a report by Grant Thornton Bharat. This surge highlights the sector’s resilience and investor appeal, driven by three high-value deals worth $300 million. Mergers and acquisitions (M&A) activity included six deals valued at $74 million, reflecting a 20% increase in volumes and 30% growth in value from Q2.
Strategic investments in technological innovation and global expansion contributed to the revival of M&A activity. The quarter saw a shift towards auto-tech and auto-component subsectors, with increased outbound M&A focused on global partnerships in auto components and EV infrastructure.
Private equity (PE) values were led by WestBridge Capital’s $200 million investment in Rapido, accounting for 55% of the top two investments. The average deal size rose to $25 million from $18 million in Q2, showing growing investor confidence. The quarter also featured two IPOs worth $768 million and two QIPs worth $470 million in the auto components space.