GCG’s Q3 2025 Automotive and AutoTech Newsletter provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.

Key findings include the following:

• Vehicle sales grew in Q3, supported by strong demand for SUVs and EVs, though regulatory pressures, profitability challenges, and fluctuating EV demand suggest that the automotive industry may face a more challenging environment in the coming quarters.

• EV sales surged in Q3 in anticipation of the expiration of federal EV tax credits, contributing to the record-high vehicle pricing for the average vehicle in September; while high vehicle pricing is anticipated to persist, consumer demand for EVs is expected to wane in the coming quarters with fewer incentives and continued environmental challenges.

• With automotive players facing challenges with developing in-vehicle software internally, the automotive industry is increasingly forming alliances to drive interoperability and establish standards for vehicle software while accelerating development and reducing risk.

• Performance across public market segments was relatively positive in Q3, with traditional automotive businesses having rising public market performance and Auto Tech players largely improving or remaining stable during Q3.

See here for all Automotive News and Updates

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