TL;DR
India's automotive R&D spending is expected to remain subdued in 2026 due to heightened Chinese competition and slower EV adoption.
India's automotive sector is anticipating muted spending on research and development (R&D) through Calendar Year 2026, a trend primarily influenced by intensifying competition from Chinese manufacturers and a slower rate of electric vehicle (EV) adoption in certain segments. A report by Kotak Institutional Equities highlights that these factors are likely to constrain R&D budgets over the coming quarters.
The pressure on R&D budgets comes at a critical juncture as the industry navigates a transformative period. While there's a push towards electrification and advanced technologies, the financial implications of fierce market competition are prompting a cautious approach to investment in innovation. This situation underscores the challenges Indian automakers face in balancing market demands with the need to invest in future technologies to remain competitive on a global scale.
