India’s automotive and electric vehicle (EV) sector saw a steady but cautious start to 2026, with deal activity remaining selective despite improved investor sentiment. According to the latest Dealtracker report from Grant Thornton Bharat, the industry recorded 35 deals worth US$745 million in the January-March quarter, which is largely in line with the 34 deals seen in Q4 2025.
However, total transaction value declined from US$837 million in the previous quarter due to the lack of large-scale cross-border transactions.There was no activity in the public markets during the quarter, including IPOs or flash investments, suggesting 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 indicates a normalization phase, even as investments continue to flow into platforms focused on electrification and mobility.
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Mergers and acquisitions activity remained weak, with only seven deals worth US$43 million. This represents a 22 percent decline in volumes and a sharp 91 percent decline in value compared to the previous quarter. Most deals were small, capacity-based acquisitions, and were largely local in nature.However, private equity has emerged as a major driver of deal activity. The quarter saw 28 private equity deals worth US$702 million, an increase of 12 percent in volume and 86 percent in value compared to Q4 2025. Investments were largely towards electric vehicles, which accounted for 11 deals worth approximately US$448 million, followed by mobility-as-a-service services with nine deals worth approximately US$210 million. Meanwhile, traditional automotive sectors have remained relatively silent as the industry continues to shift towards electric vehicles.