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Tech Uncertainty Is Leading To Fall In R&D Investments
The Business Guardian
|April 13, 2025
Enhanced uncertainties in the technological space is leading to a decline in research and development (R&D) investments, as original equipment manufacturers (OEMs) have indicated some tapering off in investments from elevated levels in Calendar Year 2024.
According to a report by Kotak Securities, automotive companies are currently dealing with several major changes—including shifts in technology, changing customer needs, and new government rules and regulations.
As per the report, because it's unclear how these changes will play out, many companies have put a pause on their R&D spending. "Automotive clients are juggling technology transition, evolving customer preferences and realigning business to minimize the impact of regulatory and policy changes. Limited clarity vis-a-vis the impact of each of these factors has led to a freeze in R&D spending. Most OEMs have indicated some tapering off in R&D investments from elevated levels in CY2024," added the report.
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