Foundation for Advancing Science and Technology (FAST India), in collaboration with IIFL Securities, has released a comprehensive sectoral brief on the Automobile and Components sector as part of its series on the State of Industrial Research and Development (R&D) in India.
This latest brief provides a detailed analysis of R&D trends, innovation outputs, and comparative performance metrics of major Indian automobile and component firms against their global counterparts. It highlights significant disparities in R&D intensity, the proportion of PhD employees, patent output, and publication rates, offering critical insights for policymakers and industry stakeholders.
According to the report, Ferrari N.V. stands out with the highest R&D intensity at 15.2%, significantly surpassing other firms. Global automotive firms, on average, exhibit three times higher R&D intensity compared to Indian firms.
Among Indian firms, Mahindra and Mahindra lead with an R&D intensity of 5.7%, nearly double that of Bosch, which has the second-highest R&D intensity among Indian companies at 2.9%.
Proportion Of PhD Employees
Global firms outperform Indian firms in the proportion of PhD employees by a factor of three. TVS Motors ranks third among all firms, global and Indian, in the proportion of PhD employees. Many Indian firms in the low-revenue cluster have negligible or zero PhD-qualified employees.
Overall, global firms produce twice as many publications per billion USD revenue compared to Indian firms. Ferrari N.V. leads in publications per billion USD revenue, publishing more than nine times the output of Bosch, which ranks second. TVS Motor and MRF rank fourth and fifth in publications per revenue among all firms, both global and Indian.In the low-revenue cluster, Bosch and TVS Motor perform well in this parameter.
Patent Output
Indian firms lag significantly in patent output, with global firms producing 30 times more patents per billion USD revenue than Indian firms. TVS Motors, despite being in the low-revenue cluster, has the highest patent count among Indian firms and ranks first in patents per billion USD revenue. It is also second among all firms, global and Indian, in this parameter.
The Indian automobile sector is on a growth trajectory, driven by notable achievements in R&D and innovation. However, to enhance its global competitiveness, the industry must address gaps in patents and publications per revenue. By fostering a culture of innovation and investing in intellectual property, Indian automobile firms can secure a stronger position in the global market.
Policy Recommendations
The report stressed the importance of encouraging higher R&D investment, especially in cutting-edge technologies and sustainable solutions. It insisted on strengthening partnerships with academic institutions to boost the proportion of PhD-qualified employees and drive high-quality research. Besides, it recommends in developing strategies to increase patent output through targeted innovation programs and better IP management.
The report also recommended to provide incentives for research publications to enhance global visibility and influence. In addition, it insisted offering support to low-revenue firms to boost their R&D capabilities and improve their innovation metrics.
By addressing these areas, Indian automobile and component firms can improve their R&D intensity, innovation outputs, and global competitiveness, ensuring sustained growth and leadership in the industry, the report added.
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