A STUDY OF IMPACT OF RESEARCH AND DEVELOPMENT COST ON SELECTED AUTOMOBILE COMPANIES IN INDIA
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INSPIRA, Jaipur, Rajasthan
Abstract
For decades, the automobile industry has influenced the world economy dramatically. Since a few
years, the automobile industry has been hard at work transforming itself into a technologically advanced
industry focused on smart and electrified vehicles and services. The automobile industry has evolved into
one of the most important engines of economic prosperity. The automobile industry is a massive industry
that includes a wide range of businesses involved in the design, development, manufacture, marketing, and
sale of automobiles. Every country's vehicle sector is a significant source of money for the country's
economy. This study examines the numerous R&D activities and commercial strategies used by the Indian
automobile sector. The impact of R&D investment on these key firm performance metrics will be highlighted
in this study, which will be valuable to automobile companies. This could be a useful piece of study for
businesses when deciding how to allocate investment funds. For this study researchers using sample of
three Automobile Companies for the period of 4 years from 2017-18 to 2020-21. As per the requirement of
the research work statistical tools have been used by the researchers. The findings presented that profit
before tax (PBT) & Sales has impact on R&D of selected Automobile companies and area where this
amount was spent by selected Automobile companies in India
Description
One of the industries in India that is growing the fastest is the automobile industry. It ranks sixth
in the world for the manufacture of both passenger and commercial vehicles, making it one of the
biggest. This enterprise additionally fosters foreign exchange appreciation by exporting 1.5 million
automobiles annually. In terms of total sales of passenger and commercial vehicles in 2020, India ranked
as the world's fifth-largest auto market with 3.49 million units sold. It ranked as the seventh-largest
manufacturer of commercial vehicles in 2019. Owing to a youthful population and expanding middle
class, the two-wheeler segment leads the market in terms of volume. Additionally, the industry's growth
was spurred by firms' growing interest in exploring rural areas. The car industry in India is the fifth largest
in the world. India ranked fifth in the world for automobile manufacturing and seventh for commercial
vehicle manufacturing in 2019. The Indian automotive industry, which includes component
manufacturing, is expected to be valued between Rs 16.16 and Rs 18.18 trillion (US$ 251.4 and US$
282.8 billion) by 2026.