Indian automotive sector held back by lack of R&D spending: Niti Aayog report – Times of India

India’s progress of changing into a worldwide powerhouse within the vehicle trade is being slowed down by a lack of innovation, in line with a brand new report by NITI Aayog.
The report additional famous that this downside was primarily on account of insufficient infrastructure in analysis and improvement as India’s spending on the sector stays among the many lowest on the planet, particularly when in comparison with main automotive nations like Germany, Japan, and the USA.
“One of probably the most important boundaries to India’s progress within the international automotive sector is the lack of innovation, largely pushed by insufficient Analysis and Growth (R&D) infrastructure,” the report famous.
The report added “This underinvestment severely limits the nation’s capability to compete in rising applied sciences comparable to EVs, autonomous driving, and sensible mobility options”.
Whereas Indian producers are identified for his or her effectivity in producing low-value, excessive-quantity automobiles, the absence of a robust innovation tradition is stopping them from transferring up the worth chain.
Based on the report, this lack of superior, differentiated merchandise makes it troublesome for Indian manufacturers to face out within the fiercely aggressive international market.
A significant concern raised by NITI Aayog is the lack of collaboration between the automotive trade, tutorial establishments, and analysis our bodies. This disconnect is hampering the stream of concepts and innovation important for growing subsequent-technology options.
As a consequence, Indian corporations typically depend on imported applied sciences, driving up manufacturing prices and diminishing the power to fabricate reducing-edge automobiles regionally. The report highlights India’s lag in essential domains comparable to battery expertise, Superior Driver Help Techniques (ADAS), and AI-primarily based manufacturing — all of which have gotten cornerstones of the longer term auto trade.
“To stay aggressive and obtain lengthy-time period progress, India should considerably enhance its R&D expenditure and construct a sturdy ecosystem that fosters innovation and technological development,” the report careworn.
NITI Aayog additionally referred to as for the creation of a robust innovation ecosystem, one which encourages collaboration, helps dwelling-grown analysis, and permits Indian carmakers to be at par with their international counterparts.