New Delhi, Feb. 20 -- Growth at Indian mid-cap engineering, research and development (ER&D) companies slowed in the first nine months of FY25 as the world's largest carmakers faced challenges from Chinese rivals and braced for additional tariffs on imported components.

The slowdown for L&T Technology Services Ltd (LTTS), KPIT Technologies Ltd, Cyient Ltd, and Tata Elxsi Ltd, as per a Mint analysis, is the latest setback for India's $254 billion IT services sector.

The ER&D space, where companies design and build technologies and products for carmakers, grew 7.4% to end with $43 billion in revenue in the year ended March 2024, according to the National Association of Software and Service Companies. ER&D's growth was almost double that of...