Automobile R&D investments soar on new regulations, emerging technologies

Multiple factors have driven the increase in R&D spending

Automobile companies’ expenditure on research and development (R&D), despite pressure on sales, grew in 2018-19 mainly owing to regulations and the emergence of new technologies.

An analysis of listed Indian automakers' (excluding Maruti) annual report for 2018-19 shows two-wheeler makers spent close to 2 per cent of their turnover on R&D, while other auto companies spent 3-5 per cent. Tata Motors and Mahindra top the table in R&D spending.

Tata Motors increased its R&D spending by more than 23 per cent in FY19 to Rs 2,965.25 crore from Rs 2,397.52 crore in the previous financial year.

Rajendra Petkar, chief technology officer