Automotive Sector M&A Activity Remains Elevated in Q4 2025
Global mergers and acquisitions activity in the automotive sector remained at high levels in the fourth quarter of 2025. European automotive suppliers are trading at a discount compared to North American and Asian peers.
Mergers and acquisitions (M&A) activity in the global automotive sector remained robust in the fourth quarter of 2025, with a total of 126 transactions recorded. This figure is consistent with the 130 transactions in the previous quarter and represents a slight decrease of 9.4% from the all-time high of 139 transactions in Q4 2024. Domestic deals within Asia constituted the largest portion of Q4 2025 transaction flow, totaling 54. European domestic transactions accounted for 30, followed by 14 in North America.
On public markets, European automotive suppliers traded at a median implied EV/EBITDA multiple of 4.8x for 2026 estimates as of February 2026. This represents a minor decrease from the 5.1x multiple observed in the Q3 2025 update. In contrast, valuation levels for North American automotive suppliers increased, with the median implied EV/EBITDA multiple rising to 5.9x from 5.3x. Suppliers in the Asia-Pacific region also saw valuation inflation, trading at 5.9x, up from 5.4x in the prior quarter, indicating stronger valuations for companies in North America and Asia relative to their European counterparts.
Share price performance among North American automotive suppliers has continued to outpace European and Asian peers over the past few years. Over the last three years, the North American supplier peer group saw an 82% share price appreciation, compared to 66% for the APAC group and a negative 5% for European peers. Within Europe, Schaeffler's stock price rose by 109.8% in the six months leading up to February 2026, driven by its initiatives in robotics and e-mobility. In North America, Dauch Corporation's stock achieved a similar 106.9% gain during the same period, attributed to a transformative merger and rebranding.
New vehicle registrations in the European Union saw continued electrification in 2025. Fully electric vehicle (BEV) registrations increased by 30% to 1.88 million units. Hybrid electric vehicles (HEV) remained the most popular segment, accounting for 35% of all new registrations, followed by petrol cars (27%) and BEVs (17%). Diesel and plug-in hybrid electric vehicles (PHEV) each held a 9% share. Both Spain and Germany demonstrated significant increases in BEV registrations over the year, while the overall new car market in France experienced a decline.