In Short:
Coimbatore-based Pricol Ltd is a top vehicle dashboard manufacturer in India that invests significantly in research and development (R&D) to stay ahead in the auto industry. Despite a slight decrease in R&D spending in FY24, the company consistently allocates over 3% of its revenue to R&D. Pricol’s focus on innovation has helped it gain market share, especially in instrument clusters, and it continues to invest in new technologies to meet customer needs. Compared to other Indian auto companies with an average R&D spending of 2%, Pricol’s commitment to R&D sets it apart.
Pricol Ltd: Setting the Bar High in R&D Innovation
When it comes to pushing the boundaries in research and development (R&D) within the Indian auto component industry, Coimbatore-based Pricol Ltd stands out as a frontrunner. The company has maintained its competitive edge in segments like driver information systems (DIS) through its robust R&D investments.
Commitment to Innovation
In the fiscal year 2024, Pricol allocated 3.4% of its revenue to R&D, showcasing a firm commitment to innovation. This slight decrease from the previous year did not deter the company’s dedication to advancing technology in the industry.
According to Vikram Mohan, Managing Director of Pricol, “We continue to invest heavily in new product development and process engineering to deliver best-in-class products and services. This proactive approach allows us to maintain our market leadership.”
Market Share Gains
Pricol’s sustained focus on R&D, coupled with its vertical integration in product development and manufacturing capabilities, has led to significant market-share gains over the years. The company’s stronghold in instrument clusters, particularly in the 2W segment, has positioned it as a key player globally.
Analysts at Emkay Research note that Pricol holds a significant market share in various segments, including a 50% share in 2W instrument clusters and an 80% share in digital clusters for e-2Ws. The company also maintains a strong presence in commercial vehicles and off-highway vehicles.
Embracing Innovation
Pricol operates two DSIR-approved R&D centers and has filed numerous patents to drive innovation across its product development functions. With technology advancement at the forefront, the company is gearing up to meet evolving customer demands in the coming years.
The commitment to innovation extends across all R&D verticals, including driver information & connected vehicle solutions and actuation, control & fluid management systems.
R&D Landscape in the Auto Sector
While many Indian auto parts companies have ramped up their R&D spending, the average expenditure in the Indian auto sector hovers around 2%. This is in stark contrast to global auto parts manufacturers, where R&D spending often exceeds 5%.
Notable players like ZF and Schaeffler AG from Germany, along with Tata Motors and Mahindra from India, have significantly increased their R&D investments in recent years, underscoring the industry’s shift towards innovation-driven growth.
With a steadfast focus on innovation and technology development, Pricol is poised to lead the way in shaping the future of the auto component industry.
