Automotive M&A Activity Remains Elevated in Q2-2025
Mergers and acquisitions in the automotive sector saw 111 transactions in Q2-2025, maintaining a high level seen in the previous year. Domestic deals originating from Asia dominated the quarter's activity.
The automotive sector recorded 111 mergers and acquisitions (M&A) transactions in the second quarter of 2025. This figure maintains the elevated deal flow observed in the prior year's second quarter, which saw 106 transactions, though it represents a decrease from the peak of 139 deals in Q4-2024.
Activity was largely driven by domestic transactions within Asia, which accounted for 99 deals. European domestic transactions followed with 58 deals, and North America contributed 34 transactions.
The primary segments contributing to M&A activity in Q2-2025 included body & chassis, brakes, steering systems, and interior/exterior components. Transactions within the electric vehicle (EV) segment played a less prominent role during this period.
Outbound deal flow remained muted, a trend attributed in part to trade tariffs introduced by the U.S. government early in the quarter. Despite some de-escalation in global trade tensions in May, the automotive sector is expected to continue facing a challenging regulatory and economic environment.