India’s auto and EV sector secures $745 million investments in Q1 2026

India’s automotive and electric vehicle (EV) sector recorded 35 deals worth USD 745 million in the first quarter of 2026, according to a report by Grant Thornton Bharat. Deal volumes remained steady compared to the previous quarter, but overall values declined from USD 837 million in Q4 2025. This drop was due to the absence of large cross-border and scale-driven transactions. No public market deals, such as IPOs or QIPs, took place during the quarter.

Key Highlights

• India’s auto and EV sector saw 35 deals worth USD 745 million in Q1 2026
• Private equity investments accounted for 28 deals and USD 702 million in value
• Mergers and acquisitions remained subdued, with seven deals totaling USD 43 million
• Outbound deal values dropped to USD 10 million from USD 4.06 billion in Q3 2025
• Deal activity focused on electrification and mobility platforms over traditional segments

Private Equity Drives Investment

Private equity (PE) investments were the main driver of deal activity, accounting for 28 deals worth USD 702 million. Both deal volumes and values increased from Q4 2025. The sector saw a mix of large investments and smaller transactions. EV-related deals led the activity, followed by mobility-as-a-service and auto-tech segments. Notable transactions included KKR’s investments in PMI Electro Mobility Solutions and Allfleet India. Funding rounds in GreenCell Mobility and Drivn Transition also contributed to the total.

Mergers, Acquisitions, and Domestic Focus

Mergers and acquisitions (M&A) activity remained subdued, with seven deals valued at USD 43 million. This marked a decline in both volume and value compared to the previous quarter. Most transactions were small-scale and aimed at acquiring capabilities rather than expanding scale. Domestic deals made up the majority, while outbound activity was limited. Outbound deal values dropped sharply to USD 10 million, compared to USD 4.06 billion in Q3 2025, reflecting a normalization in transaction sizes.

Cars24 completed two domestic acquisitions—Vehicleinfo and Carinfo—to expand its offerings across the vehicle ownership lifecycle. Investment activity continued to focus on electrification, mobility platforms, and supporting infrastructure. According to Saket Mehra, Partner and Auto and EV Industry Leader at Grant Thornton Bharat, investors are prioritizing electrification, mobility platforms, and ecosystem enablers such as charging, swapping, and battery technologies.

Traditional Segments See Limited Activity

The report highlighted that traditional automotive segments, including components and heavy vehicles, continued to see limited deal activity. This trend reflects the ongoing industry transition toward electrification and new mobility solutions.

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CarBike 360 Says

India’s impressive $745 million in automotive and EV investments during Q1 2026 underscores accelerating momentum toward electrification and innovation. With strong investor confidence, supportive government policies, and expanding infrastructure, the country is poised to strengthen its leadership in sustainable mobility. The coming quarters may further define India’s trajectory as a global hub for future-ready transportation technologies.