Kotak sees Chinese competition and slower EV uptake constraining India auto R&D in 2026
Kotak Institutional Equities expects Indian automotive OEMs to keep R&D spending under pressure through CY2026 and the next three to four quarters. Intensifying Chinese competition and slower EV adoption are pushing manufacturers to prioritise existing platforms, with new platform programmes deferred or cancelled.
Kotak expects Indian automotive OEM R&D spending to remain constrained in 2026 as Chinese competition intensifies and EV adoption rises more slowly. OEMs are prioritising existing platforms, while new platform programmes are deferred or cancelled.
Why this matters
With no related recent signals supplied, Kotak’s outlook establishes a baseline for a defensive OEM product-development cycle as Chinese competition rises and EV uptake slows.
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