Top 10 Mergers, Acquisitions and Big Bets That Shaped India’s Auto Sector in 2025

2025 turned out to be an eventful year for the Indian auto industry for several reasons. From extensive product launches across segments to the rollout of key policy measures, 2025 emerged as a pivotal year for the auto industry, setting the trajectory for its evolution in the years ahead. 

Besides these, 2025 also marked some crucial mergers, acquisitions, and investments that grabbed headlines. Here’s a look at some of the most important such announcements that had a significant impact on the Indian automotive industry.

1. Tata Motors–Iveco (Commercial Vehicles)

In mid‑2025, Tata Motors agreed to acquire Italy’s Iveco Group (minus its defense business) in an all-cash deal worth $4.34 billion (approx. ₹38,860 crore). This was one of India’s largest overseas automotive acquisitions and gave Tata a direct footprint in Europe’s truck and bus markets. The deal makes Tata Motors (already the world’s 4th‑largest heavy‑truck maker) “within touching distance” of the global top three CV players. It would also help Tata expand into Europe and Latin America.

2. Bajaj–KTM (Two-Wheelers)

In November, Bajaj Auto completed its acquisition of full control over KTM and its parent company Pierer Mobility AG (PMAG) which led to the formation of a new venture called Pierer Bajaj AG (PBAG). The Austrian bikemaker has been in a bad shape for some time now as sales have plummeted in all major international markets in the last few years. The deal that began in May this year, involves an €800 million investment (approx. ₹8,464 crore) in order to stabilise KTM and secure majority ownership of its holding entities.

3. Maruti Suzuki–Suzuki Motor Gujarat (Passenger Vehicles)

Maruti Suzuki India Ltd. (MSIL) merged with its wholly-owned subsidiary Suzuki Motor Gujarat (SMG) at the end of 2025. Maruti raised its authorized capital and completed the amalgamation that came into effect from 1 December 2025. The deal simplified Suzuki’s corporate structure and consolidated production with the SMG’s Gujarat plant now operating under the Maruti Suzuki umbrella. This merger increased Maruti Suzuki’s authorised share capital by ₹15,000 crore and as a result all SMG employees were absorbed under MSIL.

4. Mahindra & Mahindra–SML Isuzu (Commercial Vehicles)

In 2025, Mahindra & Mahindra (M&M) closed its acquisition of the remaining stake in SML Isuzu Ltd (rebranded SML Mahindra). This move, confirmed in August 2025, expands M&M’s presence in light and intermediate commercial vehicles. With this, M&M acquired a 58.96% controlling stake in SML Isuzu for ₹555 crore The takeover (initially an 80:20 JV) brings a key bus/truck plant fully under M&M and adds capacity for new CV models.

5. Ashok Leyland–CALB (EV Batteries)

In September, Ashok Leyland (AL) announced a ₹50,000 million investment to set up EV battery-cell manufacturing in India. AL will partner with China’s CALB (one of the world’s top battery makers) on this venture. The new plant in the next 7–10 years will supply batteries for AL’s Switch EV brand and other EV makers, marking a big bet on localizing India’s battery supply chain. Under this strategic alliance, a global centre of excellence will be established to foster research and development in battery materials, recycling, battery management systems, and advanced manufacturing processes.

6. Ultraviolette (Electric Two-Wheelers)

Bengaluru-based EV motorcycle startup Ultraviolette closed a $45 million (approx. ₹4.04 billion) funding round in December led by Zoho Corporation and Lingotto (Ferrari-owner Exor). The fresh capital will scale production of its F77 and X-47 electric bikes and fund upcoming models like Shockwave, Tesseract, etc. This funding, along with a $21 million (approx. ₹1.89 billion) tranche raised earlier in 2025, will support Ultraviolette’s expansion in India and overseas.

7. Ola Electric (Electric Mobility)

In November, Ola Electric’s shareholders approved raising up to ₹1,500 crore via equity (rights issue/QIP/etc.). The funds will strengthen Ola’s balance sheet and ramp up its in‑house battery cell and energy storage business. (Ola is rapidly expanding its gigafactory cell capacity – from 2.5 GWh to 5.9 GWh by March 2026 – for use in both its scooters and new home battery solutions.

8. Ford (Passenger Vehicles/EVs)

Ford quit the Indian passenger vehicle market in 2021 and its re-entry was one of the most discussed topics this year. The American carmaker operated two manufacturing plants in India– one in Chennai plant (Maraimalai Nagar) and the other in Sanand, Gujarat. While the latter was sold off to Tata Motors, Ford has announced a fresh investment worth $370 million (approx. ₹3,250 crore) to revamp its Chennai facility for advanced engine production. 

The new engine plant will serve global markets, starting with an annual capacity of 235,000 units, fitting into Ford's global manufacturing strategy. The move is expected to create over 600 new jobs in Tamil Nadu. Production at this facility is slated to begin by 2029. Meanwhile, Ford continues to manufacture engines for export at its 100-acre Sanand facility, which is leased from Tata Motors.

Also READ: Top 10 Car Launches In 2026 You Need To Know About

9. Vinfast (Electric Vehicles)

Vietnamese EV manufacturer Vinfast set foot in India with its first two products — VF6 and VF7 — in 2025. The company also announced an additional investment worth $500 million, doubling its initial commitment to around Rs 9,000 crore (over $1 billion). The added investment is said to be utilised to expand its existing facility at the SIPCOT Industrial Park in Tamil Nadu, setting up dedicated lines for electric scooters and electric buses, and establishing charging infrastructure across the country.

10. Lumax Auto–IAC India (Auto Components)

Lumax completed its acquisition of IAC International Automotive India (IAC India), first buying 75% in 2023 and then the final 25% by May 2025, making IAC India a wholly-owned subsidiary. This move integrated IAC India's expertise in cockpit/door panels, boosting Lumax's value chain in future mobility. The strategic objective of this expansion was to expand Lumax's capabilities in automotive plastics, especially for the growing EV market, leveraging IAC India's role as a key supplier for Mahindra’s Electric Origin SUVs.