Indian Automotive Sector Bounces Back with Robust Investments in Q3 2024
The Indian automotive sector experienced a significant upswing in Q3 2024, securing 32 deals valued at USD 1.9 billion. This marks the highest activity since Q4 2021, highlighting investor enthusiasm for innovation and alternative fuel technologies, alongside increased global investments, IPOs, and burgeoning unicorns like Rapido and Ather Energy.
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- India
The Indian automotive sector saw a remarkable resurgence in the third quarter of 2024 with 32 investment deals reaching USD 1.9 billion, according to a report by Grant Thornton. This marks the highest quarterly activity since the fourth quarter of 2021, underscoring renewed investor confidence in the industry.
According to the report, the quarter witnessed a 30 percent rise in deal values compared to the previous quarter, signaling strong investor interest in automotive innovations. Mergers and acquisitions (M&A) have bounced back significantly with six deals worth USD 74 million, representing a 20 percent increase in volume and a 30 percent rise in value. A notable M&A deal involved Exicom Tele-Systems Ltd acquiring charging technology firm Tritium Pty Ltd for USD 30 million.
The report further highlighted robust growth in private equity (PE) and venture capital (VC) sectors, driven by the government's PM E-DRIVE scheme and a focus on alternative fuel technologies. Noteworthy contributions from WestBridge Capital's USD 200 million investment in Rapido and heightened activity in initial public offerings (IPO) and qualified institutional placements (QIP) bolstered the sector. Firms like Rapido and Ather Energy emerged as unicorns, while Ola Electric's IPO provided a significant push to the industry.
(With inputs from agencies.)