The Indian automotive sector experienced a significant resurgence in the third quarter of 2024, as reported by Grant Thornton. During this period, there were 32 deals totalling $1.9 billion, encompassing mergers and acquisitions (M&A), private equity (PE), initial public offerings (IPO), and qualified institutional placements (QIP). This activity marked the highest quarterly performance since the fourth quarter of 2021.
According to the report, there was a 30 per cent increase in deal values compared to the second quarter of 2024, indicating a renewed investor confidence in the automotive industry. The report also highlighted a rebound in M&A activity, with investors placing a greater emphasis on innovation.
In the automotive sector, M&A activity recorded six deals valued at $74 million, which represented a 20 per cent increase in volume and a 30 per cent rise in value from the previous quarter. The report pointed out that the major M&A deal of the quarter involved Exicom Tele-Systems acquiring Tritium, a charging technology company, for $30 million.
Saket Mehra, a partner at Grant Thornton Bharat, expressed optimism about the future, stating that with government support through the PM E-DRIVE scheme and the industry's focus on alternative fuel technologies, there is an expectation of increased global PE investments and partnerships. This development positions India as a leading export hub for electric and smart mobility solutions.
