Whither research?
Whither research?
The auto industry refuses to invest in research and development of technology that suits the Indian conditions. They do not lack the resources to do so. They lack the commitment. Investment in research seems to be a pittance when compared to the massive revenues they generate.
Consider this, General Motors spent US $176.55 million or 3.8 per cent of its turnover on research and development in 1999. The Indian auto giant, Maruti Udyog Limited, on the other hand, spent just 0.87 per cent of its total turnover which was much less than that of General Motors in absolute terms too.
If one considers just research and development in cleaner technologies, the data to show how much is invested just does not exist. Overall the sector has shown little interest in introducing cleaner vehicles. They are happy to meet the existing Euro II standards. Around 31 per cent have minor plans to introduce better technology, which means mainly improving existing vehicles to Euro III. In the two-wheeler segment, moving to four-stroke engines remains the future target.
In contrast to the Indian auto companies are the multinationals that have conducted research but refuse to share the fruits of it in India. Their excuse, and an indefensible one at that, is poor fuel quality and lack of consumer purchasing power in India. But as GRP ratings have shown, these companies continue to treat India as a dumping ground.
The auto sector needs to put their money where their mouth is, not shortsell the consumer and public health. Else, social audits like GRP will continue to show them up for what they are