Tata Motors is the only Indian company at the 99th position in global R&D spenders and ranks at 13th if you include JLR.
Indian companies are usually not found on such lists of top research and development spenders. However, this time around Tata Motors did show up in the list one could never imagine. The Indian vehicle maker, Tata Motors ranked at 99th position globally in spending on R&D and when you include Jaguar Land Rover, which is again Tata owned, it ranks 13th in the list.
The list is then followed by Mahindra ranking at 114. Only three among the top ten R&D spenders in India are from the automotive industry while five are from pharmaceutical industry. Tata Motors has spent over Rs. 19,000 crores including Jaguar and Land Rover, that’s more than the next nine companies combined spend on R&D.
According to the economic survey of the Government of India, the country’s R&D spending in terms of GDP percentage has been static at 0.6 – 0.7 percent for nearly last 20 years. As per GDP percentage, US is scoring 2.8 followed by China scoring 2.1 percentages. As per Nilesh Shah, MD of Kotak Mahindra, Indian investors lack in terms bargaining power to encourage the management’s take on R&D.
Looking at Tata Motors spending on R&D, Mahindra, Honda and Maruti Suzuki might take a step towards innovative R&D. Mahindra, Honda, Maruti Suzuki, and Ashok Leyland are among the top brands to spend on research and development in India.
Tata Motors Top 100
– Tata Motors ranked at 99th position globally for R&D investment
– It ranks 19th if JLR gets included
– Tata Motors spent Rs. 19,000 crores in R&D including JLR
Source – ETAuto.com