Global automotive deals insights: Q2 2019

Start adding items to your reading lists:
Save this item to:
This item has been saved to your reading list.

Executive summary

Deal value in Q2 2019 hit $8 billion, down 51% from Q1 2019, driven by a lack of megadeals this quarter and continued softness in deal activity. Deal volume in Q2 has reached a four-year low at 182 deals, down 33% from Q2 2018 and 18% from Q1 2019. Despite decreases in value and volume, YTD 2019 average disclosed deal size excluding megadeals is consistent with the comparable YTD period in 2018 at $136 million. As the sector transitions through its cyclical phases, companies are evaluating deals pursuit strategies and are taking a harder look at positioning themselves for leaner times. Nonetheless, the need to stay competitive in changing times is ever present so expect some volatility in the quarters to come.


Key trends and highlights

  • Total deal value in Q2 2019 ($8 billion) saw a decline of 51% over Q1 2019. For YTD 2019, the deal value also declined by 46% over YTD 2018. Total deal volume in Q2 2019 dropped by 18% to 182 deals over Q1 2019 and declined by 28% in YTD 2019 over YTD 2018.
  • Average deal size observed a decline of 53% to $124.7 million in Q2 2019 over Q1 2019. When compared to YTD 2018, average deal size declined by 25% in YTD 2019.
  • Asia and Oceania saw the largest amount of deal value and contributed ~52% to the total deal value in Q2 2019, as both target and acquirer region. The deal value for the region increased by 2.9x in the current quarter over the previous quarter, under the acquirer region.

“The decline in Automotive M&A activity reflects the significant challenges facing the industry.”

Jeff Zaleski, US Automotive Deals Leader

Contact us

Jeff Zaleski

US Automotive Deals Leader, PwC US

Ray Telang

Automotive Leader, PwC US

Follow us