Indian Automotive Sector Records Six-Fold Uptick in PE Deals in Q1: Report The growth was primarily driven by a USD 1 billion investment in Erisha E mobility by an undisclosed investor based in of UAE and made up for 89 per cent of the total PE activity for the first quarter of 2025.
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After a sombre final quarter of 2024, PE activity in the Indian automotive sector experienced a six-fold growth in deal values, according to a report by Grant Thornton, titled 'Automotive Dealtracker: Providing M&A and PE deal insights."
The growth was primarily driven by a USD 1 billion investment in Erisha E mobility by an undisclosed investor based in of UAE and made up for 89 per cent of the total PE activity for the first quarter of 2025.
Along with the EV sub-sector, auto components and MaaS contributed to the overall deal activity, staying consistent with the ongoing deal trends of the industry, the report said.
The report also suggests that there is significant interest from PE firms across the sector with aggressive strategies to add auto component companies to their portfolios. Carlyle, the global equity firm, acquired controlling stakes in Highway Industries and Roop Automotives, indicating a rising trend of consolidation within the sector.
Bain Capital acquired a minority stake in Dhoot Transmission Group, reaffirming its commitment to long-term growth strategies and innovation in automotive components.
Erisha E Mobility secured a USD 1 billion investment, fueling its plans to enter markets like the Middle East, Europe, the USA, and Africa. The report said that the funds will also be utilized towards the creation of smart manufacturing hubs focused on sustainable energy solutions.
Prosus-MIH Investments One B.V. invested in Rapido, with a 2.9 per cent stake at its unicorn valuation. Reports indicate that Rapido is planning to expand its service footprint from 120 to 500 cities. The ride-hail service company is also gearing up for an IPO post a successful funding round in September, signalling strong investor confidence.
Bharat Value Fund led BGAUSS's funding round, which will help the company accelerate its manufacturing capabilities and enhance its R&D for new product launches. The capital is also said to support the expansion of its dealership network from 120 to 500 locations.
Sarla Aviation secured a USD 10 million Series A1 funding round, led by Accel and other angel investors, which marks a significant step towards transforming urban transportation. The company aims to offer affordable and sustainable air mobility solutions to combat the challenges around congested urban areas.
