Q3 2026 Automotive and AutoTech Industry Update

GCG’s Q3 2026 Automotive and AutoTech Industry Update report 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:

The North American automotive industry held steady in Q3 2026, as flat demand, affordability pressures, and escalating U.S.–Canada trade tensions kept OEMs focused on profitability, supply chain flexibility, and disciplined capital deployment. Hybrids drove electrification growth, OEMs increasingly partnered externally for software and AI driving capabilities, and robotaxis moved from expansion to commercial scale.

Automotive M&A activity remained elevated in Q3 2026, with 197 transactions, up 74% from Q3 2025 and just below the prior quarter’s three-year high. Average deal value declined to $166 million as activity shifted toward smaller transactions. Strategic buyers represented approximately 90% of deal volume for the third consecutive quarter, and AutoTech private placements reached a three-year high of 130 deals.

Automotive public equities delivered mixed performance in Q3 2026. Traditional Suppliers and Next Gen Automotive – EV / Software Defined led LTM returns at 21.0% and 47.8%, respectively, ahead of both the S&P 500 and NASDAQ, while Traditional OEMs, Growth/EV Suppliers and Charging Ecosystems all declined. Automotive stocks continued to trail broader markets over the three-year period.

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