Design Rights And Pricing Power In The Passenger Car Industry: A Legal And Economic Analysis

Written by: Chandra M, BB.A LL.B (Hons), School of Excellence in Law, Tamil Nadu Dr Ambedkar Law University, Chennai

&

Dr. M.D. Chinnu, Assistant Professor, Dept. of Economics, School of Excellence in Law, Tamil Nadu Dr Ambedkar Law University, Chennai

Published on: 4th  April 2026

Abstract

This study examines how design rights influence pricing power in the passenger car industry by legally protecting vehicle aesthetics and limiting competitive imitation. It analyses the legal framework governing automotive design rights and evaluates how such protection enables manufacturers to command price premiums beyond functional or technological differentiation. By applying economic theories of intellectual property and market power, the study explores how design exclusivity affects pricing strategies and moderates price competition among passenger car manufacturers. Selected case studies from the automotive sector illustrate the relationship between protected design features and sustained price differentiation. The study argues that design rights, while intended to incentivise innovation, also function as strategic tools that enhance pricing power in concentrated markets. By integrating legal analysis with economic reasoning, this research contributes to a deeper understanding of how design protection shapes pricing mechanisms within the passenger car market.

Keywords: design rights, pricing power, vehicle design, passenger car industry, intellectual property, market competition.

SECOND.pdf

Download PDF • 404KB

Volume2 | Issue 4