After peaking during the COVID-19 pandemic in 2021, automotive M&A activity has remained subdued in recent years, with only a few isolated outliers driven by large strategic transactions.

In H1 2026, automotive M&A activity declined compared with H1 2025. The number of completed transactions fell from 584 to 484 (-17.1%), while total disclosed deal value decreased from €33.6 billion to €20.2 billion (-39.9%). The slowdown was driven by macroeconomic uncertainty, geopolitical tensions, trade barriers, and persistent profitability pressures, with companies prioritizing capital discipline and pursuing smaller, capability-driven acquisitions over large-scale transformational transactions.

H1 2026 transactions continued to highlight supplier consolidation and acquisitions targeting key automotive technologies, including semiconductors, autonomous driving, and ADAS.

M&A activity: Half-year comparison H1 2020 – H1 2026

Our latest automotive M&A report H1 2026 is available for download and presents an overview of the period’s top five acquisitions as well as two case studies.

Notable deals

The following five transactions are included:

• Stanley Electric acquires Iwasaki Electric, expanding into lighting solutions for autonomous driving infrastructure.
• CIE Automotive strengthens its decorative automotive components business through the acquisition of Aludec, adding eight plants and expanding its global footprint.
• Lyten acquires Northvolt’s battery manufacturing and research assets in Sweden, representing assets with a book value of €4.2 billion.
• Dauch (formerly AAM) acquires Dowlais Group and its subsidiaries, GKN Automotive and GKN Powder Metallurgy, creating a scaled global supplier of driveline and metal-forming solutions for the automotive industry.
• STMicroelectronics acquires NXP’s MEMS sensors business, expanding its automotive safety and industrial sensor portfolio.

 

In-depth case study transactions

Of the five M&A transactions, the following two were examined in greater detail: Dauch Corporation (formerly AAM)/ Dowlais Group and STMicroelectronics/ NXP Semiconductors.

Key trends in automotive M&A activity

The selected M&A transactions highlight three key trends:

1. ongoing consolidation for scale and competitiveness;
2. technology-based deals focused on semiconductors, sensors, and autonomous driving capabilities;
3. and restructuring-driven dealmaking involving distressed assets.

Other notable M&A developments

Toyota Group privatizes Toyota Industries in a €37 billion deal, strengthening the founding family’s control over Japan’s largest business group.

In late April 2026, Denso withdrew its potential €7 billion offer to acquire a stake in Rohm, a Japanese semiconductor and electronic components manufacturer. However, the two companies plan to further expand their strategic partnership.

If you are interested in the full analysis, download the latest automotive M&A report to explore the most significant automotive deals of H1 2026.

KnowledgeAgent’s previous automotive M&A reports can be found on our blog page:

1. 01-2026: The KnowledgeAgent automotive M&A report H2 2025
2. 07-2025: The KnowledgeAgent automotive M&A report H1 2025
3. 02-2025: The KnowledgeAgent automotive M&A report H2 2024
4. 09-2024: The KnowledgeAgent automotive M&A report H1 2024

Request a meeting with our Automotive & New Mobility team to discuss how we can support your next M&A transaction.