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Around $40 Billion was Spent on R&D by 5 Global Automotive OEMs in 2016
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Automotive manufacturers are currently focusing on building fully connected and completely autonomous vehicles, as drivers expect next-generation digital technologies in their cars. As autonomous and connected technologies go hand-in-hand in building efficient self-driving cars, connected car technologies will create a drift in the automotive ecosystem to help automakers make a seamless shift from semi-autonomous driving to fully autonomous driving in the future. In order to match the market expectation, OEMs’ objective is to build cars that can change the form and function, as opposed to what is being offered now. Moreover, in the race to reduce the carbon footprint, OEMs are focusing on unique, customized strategies in building electric vehicles that help in achieving sustainability. Creating smart mobility solutions by conceptualizing the idea of sharing electric vehicles by optimizing cross-company collaboration is another area of focus for automakers to generate revenue. Hence, OEMs are in the process of building next-generation electric vehicles with autonomous driving capability, which will ultimately create a synergy between OEMs and transportation companies in developing a cost-effective business model that leads to a win-win partnership. Moreover, several OEMs are seen as partnering with companies to provide an on-demand network of cars, object recognition, and development of HAD maps. Automakers are keen on building their next-generation infotainment platforms by partnering with key players in this space.
This study analyzes Research & Development data from the annual reports and 10-K reports of 5 global automotive OEMs. It benchmarks these 5 OEMs against 20 key performance indicators.
The KPI are based on total units sold, total revenue generated, R&D expenditure, R&D expenditure in terms of basic research, advanced research and product development, total employee head count, number of engineering locations, nameplates sold, vehicle platforms sold, number of manufacturing plants, number of patents filed, part commonality, development timeline. The KPIs are analysed and key takeaways are provided for each one of them.
This research can help OEMs identify where they are placed with respect to other global players and for suppliers to understand the research expenditure spent by major OEMs.
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