Market overview
In Q3 2026, the automotive industry continued to face a challenging environment marked by moderate production volumes, ongoing consolidation, and an evolving competitive landscape. Market conditions remained demanding for both OEMs and suppliers, driven by persistent cost pressure, a shifting powertrain mix, intensifying competition from new market entrants, and continued restructuring across the value chain.
The number of completed automotive M&A deals increased slightly from 95 in Q2 2026 to 98 in Q3 2026. M&A activity was primarily driven by transactions in the automotive aftermarket and distressed and special situations, as well as disposals of non-core business units, such as the sale of Magna’s Car Top Systems business to Mutares.
Valuation multiples showed a mixed picture across regions. In Europe, EV/Sales and EV/EBITDA multiples rose by 6.4% and 2.1%, respectively, while EV/EBIT multiples fell by 1.3%. North America recorded decreases across all metrics, with EV/Sales, EV/EBITDA, and EV/EBIT multiples falling by 4.4%, 4.3%, and 5.9%, respectively. A similar trend was observed in Asia, where the respective multiples decreased by 4.8%, 5.8%, and 4.9%.
Geopolitical tensions and US tariffs continue to create uncertainty across the automotive sector. At the same time, moderate production volumes and persistent industry-specific challenges are prompting companies to sharpen their portfolios, strengthen their global footprints, and build more resilient supply chains, with many diversifying into adjacent, higher-growth segments.
Combined with Chinese suppliers following their OEM customers into Europe, these dynamics are adding competitive pressure on established players and creating continued momentum for consolidation and M&A activity across the industry.
The number of completed automotive M&A deals increased slightly from 95 in Q2 2026 to 98 in Q3 2026.
Top M&A deals Q3 2026
- Magna Car Top Systems (CTS), the convertible roof and spoiler business of Canadian supplier Magna, was acquired by listed turnaround investor Mutares. Based near Stuttgart, CTS generates revenue of around €75m and operates sites in Germany, Poland, China, Mexico, and Japan. The transaction forms part of Magna’s active portfolio clean-up, while Mutares will integrate CTS into its HILO Group, enabling OEMs to source integrated roof and exterior systems from a single supplier.
- ReadyLIFT, TeraFlex, Falcon, LOGIQ, and Smittybilt, five US aftermarket brands for trucks, SUVs, and Jeeps, were acquired from Wheel Pros by Bestop, a portfolio company of Kinderhook Industries. The transaction takes Bestop, known for supplying the factory soft top for every Jeep Wrangler since 1986, into suspension parts and off-road accessories for its existing customer base. The deal is Bestop’s eleventh add-on since Kinderhook acquired it from Magna in 2015.
- Trico Belgium, a manufacturer of wiper arms and blades in Aubange, Belgium, was acquired out of bankruptcy by Jiangsu Yunyi Electric, a Shenzhen-listed Chinese automotive electronics supplier. The plant is Yunyi’s first European production site, and the company plans to invest in expanding it into a full wiper-system plant.
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Automotive Lead
Tobias Schätzmüller
Managing Partner
Transactions
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