The Indian automotive sector experienced a significant resurgence in the third quarter of 2024, with 32 deals totaling $1.9 billion across mergers and acquisitions (M&A), private equity (PE), initial public offerings (IPO), and qualified institutional placements (QIP). This marked the highest quarterly activity since the fourth quarter of 2021, signaling renewed investor confidence in the industry. The M&A activity saw 6 deals worth $74 million, with investors focusing more on innovation. The major M&A deal of the quarter was Exicom Tele-Systems Ltd’s $30 million acquisition of a charging technology company, Tritium Pty Ltd.
The report by Grant Thornton highlighted the growth in PE and VC investments during the quarter, with 22 deals worth $542 million. This was a 30% increase in value from the previous quarter, with EV and Mobility-as-a-Service (MaaS) subsectors dominating the landscape. WestBridge Capital’s $200 million investment in Rapido led to high-value deals, reflecting growing confidence among investors. Global players such as Carlyle are also investing in India’s automotive sector, with plans to acquire and merge mid-market companies specializing in EV technologies.
The IPO and QIP landscape in Q3 2024 also saw heightened activity, with two IPOs worth $768 million and two QIPs raising $470 million. Rapido and Ather Energy became unicorns, and Ola Electric’s multi-million-dollar IPO provided a significant boost to the sector. With government support through initiatives like the PM E-DRIVE scheme and the industry’s focus on alternative fuel technologies, increased global PE investments and partnerships are expected, positioning India as a leading export hub for electric and smart mobility solutions.
The report also noted that the average deal size surged to $25 million, reflecting the growing confidence among investors in the Indian automotive sector. The sector’s growth is further fueled by investments in EV technologies, as seen through major acquisitions and mergers. The focus on innovation and alternative fuel technologies is driving investor interest in the industry, with opportunities for both domestic and global players to capitalize on India’s potential as a key market for electric and smart mobility solutions.
Overall, the third quarter of 2024 saw a significant resurgence in the Indian automotive sector, with increased M&A, PE, IPO, and QIP activity. The industry’s focus on innovation and alternative fuel technologies, supported by government initiatives, is attracting both domestic and global investors. The sector’s growth is reflected in high-value deals, with companies like Rapido and Ather Energy becoming unicorns. With growing investor confidence and heightened activity in the PE, IPO, and QIP landscapes, India’s automotive industry is poised for continued growth and success in the future.
