The automotive M&A landscape saw renewed momentum in 2025, with transaction volumes surpassing the prior year and a noticeable rise in larger-scale deals. Dealmakers are navigating a period of strategic recalibration, balancing long-term electrification transformation against immediate operational pressures from rising costs, uneven EV adoption, and tightening regulatory demands. At the same time, geopolitical volatility, trade tariffs, and supply chain realignment are reshaping how and where capital is deployed.

The A&M Corporate Transactions Group is proud to present the latest Automotive M&A Trends Report. Authored by Managing Director David Evans, this report delivers data-driven insights and expert perspectives on M&A across the automotive sector, covering global transaction volumes, values, valuations, and buyer composition, along with company performance across automotive sector segments.

Key Features of the Report

Comprehensive Analysis: This edition explores the key trends shaping the global automotive deal landscape, including increased transaction momentum, evolving valuation dynamics, strategic consolidation, electrification, software-defined vehicles, and next-generation mobility technologies.

Data-Driven Insights: Leveraging data from S&P Capital IQ, Refinitiv, and independent research, we provide detailed analysis of industry trends and company performance across automotive sector segments, automobile manufacturers, parts and equipment, and tires and rubber.

Market Context: As the industry continues to navigate shifting consumer demand, geopolitical pressures, supply chain realignment, and accelerating technological transformation, the report examines how dealmakers are positioning for long-term growth and resilience.

Key Findings Include

• M&A activity increased in 2025, with almost 1,000 transactions announced versus just over 900 in 2024. Transactions exceeding $50 million accounted for roughly 30% of all disclosed deals, a higher proportion relative to 2024.
• Valuation multiples rose to an average of 12x in 2025 (up from approximately 9x in 2024), driven by elevated valuations in select deals, particularly in China, within the automotive components and electronics segments.
• Strategic buyers represented approximately 68% of announced transactions, with financial buyers making up the remaining 32%, consistent with the trend observed in prior periods.
• Deal activity was driven by acquirers targeting electrification, software-defined vehicle (SDV) capabilities, autonomous driving and ADAS, commercial vehicles, and off-highway powertrains reflecting the industry's accelerating transition away from legacy ICE architectures.
• Geopolitical volatility and trade tariffs are driving a surge in nearshoring activity, with companies divesting legacy ICE-related assets to fund innovation while consolidating distressed suppliers amid higher interest rates and uneven EV demand.
• US Light Weight Auto and Light Truck Sales (SAAR) peaked at 17.9 million in Q1-25 before declining to 14.8 million in Q4-25, while assembly volumes held at 9.6 million in Q4-25.

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