New Delhi, Aug. 6 -- India's automotive sector is likely to face R&D budget constraints in Calendar Year 2026, with spending expected to remain muted over the next few quarters amid intensified Chinese competition, according to a report by Kotak Institutional Equities.

It says, "Automotive OEMs (Original Equipment Manufacturers) are prioritizing investments in existing platforms and models to counter increased competitive intensity from Chinese OEMs amid a more gradual increase in BEV (Battery Electric Vehicles) sales mix."

In the automotive sector, R&D spends continued to remain under pressure due to industry dynamics, as industrial and utilities clients are heavily investing in Information Technology (IT)-Operational Technology (OT) c...