What drove the sharp rise in R&D expenses in Q2 2024?

The sharp rise in R&D expenses in Q2 2024 can be attributed to several key factors: 1. **Strategic Shift in R&D Allocation**: Companies like Mercedes are redirecting their R&D funds from EVs to ICE development in response to market shifts and changing customer preferences. This strategic reallocation indicates a need for continued innovation in traditional combustion engine technologies. 2. **Increased R&D Intensity Among Indian Firms**: Despite lagging globally in patent output and R&D intensity, Indian firms like Mahindra and Mahindra (M&M) and Bosch are leading in R&D spending within their country. This trend suggests that Indian firms are increasing their R&D investments, which could be influencing the overall R&D expenditure trend. 3. **Focus on Innovation and Long-Term Profitability**: R&D is crucial for companies aiming to innovate and stay competitive. The investment in R&D during Q2 2024 reflects a continued focus on long-term profitability and securing intellectual property through patent filings. These factors, among others, contribute to the observed increase in R&D expenses during the quarter.