Automotive sector tops Research and Development expenditure in Japan

AUTOMOTIVE

Japan’s auto industry is ramping up R&D investment to defy the once-in-a-century technological disturbance generated by electrification, connectivity and autonomous driving.

Automotive companies seized the top four slots for the greatest amount of total R&D spending this year in a survey of Japanese companies published July 23 by the Nikkan Kogyo business daily.

It is a measurement that more recently has been intensely inclined to electronics and consumer goods companies.

Japan’s largest investor in the future this year was Toyota, with an R&D budget of 1.1 trillion yen ($10.13 billion) in fiscal year 2019, according to the Nikkan Kogyo.

On the second place was Honda, which earmarked 860 billion yen ($7.92 billion).

Nissan was on the third place with 550 billion yen ($5.06 billion), and the Toyota-affiliated global supplier Denso was the fourth-highest spender at 520 billion yen ($4.79 billion).

Their spending overtook that of Japanese high-tech firms like Sony, Panasonic and Toshiba, which were known to set the global standard for electronic gadgetry and digital creativity and innovation.

Automakers are increasing their R&D investment to bring some of that tech know-how in-house as they race to implement software systems and artificial intelligence to cars.

Sony had the nation’s fifth-biggest R&D budget; Panasonic was seventh.

Measured in a distinctive way, Denso took top honours in Japan’s auto sector.

Denso spent the biggest amount on R&D as a percentage of overall revenue. Its budget represents 9.5 percent of sales, thrashing the other automakers and suppliers at the top of the list.

Shreyas Tanna

About Shreyas Tanna

The winner of Mr. Pune 2009 Pageant, Mr. Shreyas Tanna is currently the young, dashing, and dynamic CEO of a market research company called Research N Reports in Pune. Fondly known as RNR, the company specializes in market research as well as industry analysis, and is closely associated with its parent company Absolute Markets Insights (AMI). Mr. Shreyas Tanna began his corporate journey as the Head of Corporate sales & PR at RED Entertainment while pursuing his degree for MMS (Marketing) from the MGM College of Management, Mumbai. After accomplishing the tedious task of balancing his work and education, he further polished his skills in Corporate Sales, Public Relations, Channel Development, Global Client Engagement, Strategic Consulting, and Brand Development by working with HDFC Life and ResearchMoz Global Pvt. Ltd. His dedication towards his work has even won him accolades such as the National Level Performer 2013 – HDFC Life and Mr. ResearchMoz 2015. A disciplined individual with a loving heart, he is often seen taking crisp walks with an engrossed look and a gentle smile within the premises of his company to interact with the various departments. And he will be usually followed by an adorable trail of his beloved trio of Shih Tzu babies proudly known as Gucci, Drake, and Paris. The most enticing thing that you will notice about this content and proud pet parent is his infectious positivity and the firm belief in his eyes, a reflection of his favorite quote, “LIFE IS BEAUTIFUL!”

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