The global shortage of semiconductors or chips in the aftermath of the Covid-19 led pandemic has eased as per a report by Crisil. A development that led most automakers to cut down production significantly and postpone the launch of new models or to put them to production through 2020, 2021, 2022 and a good part of 2023 has finally eased to iron out any supply chain disruptions that may be there.
Expected to address and improve predictive demand forecast, the better availability of chips should enable better production schedules. By FY2025-26, Crisil analysts are of the opinion that demand-supply dynamics should be more balance with additional manufacturing capacities getting commissioned.
With the chips possessing distinct electrical properties that make them the cornerstone of all electronic equipment and devices, it is the auto industry that has come to use them for a variety of functions as automobiles turn increasingly software driven. While the computer and communication equipment (C&C) segment consumes roughly 63 percent of the chips produced, the auto industry consumes roughly 13 percent of them. The other industrial segments consume about 12 percent.
With new developments such as autonomous and EVs, the use of semiconductors in automobiles is only slated to rise. With passenger vehicles the recipient of most technological innovations ahead of other segments such as two-wheelers, three-wheelers and commercial vehicles, it should not come as a surprise that they consume about 1,500 chips on average – the highest among all automobile types.
As more advanced electronic features are incorporated, the use for chips increases. The electric passenger vehicles, for example, use almost twice as many chips as internal combustion engine (ICE) passenger vehicles do. The improving supply and slowing demand for computers and mobile phones is therefore looked upon as a blessing in disguise for automobiles and their manufacturers.
Anuj Sethi, Senior Director, CRISIL Ratings, mentioned, “The chip shortage faced by Indian passenger vehicle makers is easing, with current availability at 85-90 percent of total requirement. The production loss on account of the chip shortage, which had halved to about 300,000 PVs on-year in fiscal 2023, is estimated to have further declined to under 200,000 PVs by the end of September 2023.”
Most passenger vehicle manufacturers are currently operating at near optimal capacity utilisation due to stronger-than-anticipated demand. New orders to be serviced remains high at about 700,000 units at the end of September 2023.
The easing of chip shortage should help automakers honour new orders with better prediction and faster production. Global automobile demand, severely impacted by the Covid-19 pandemic, made a strong recovery in the latter part of FY2021-22. It caught automobile manufacturers off guard as they had not placed substantial orders for chips.
The surge in demand for personal computers, laptops and mobile phones, driven by work from home, virtual learning and remote healthcare services, led to a significant chip procurement challenge for the automakers.
Geographically, the chip ecosystem is skewed, with western nations dominating chip architecture, design, manufacturing equipment, specialised materials and chemicals. Semiconductor fabs1 on the other hand are concentrated in eastern nations, such as Taiwan and South Korea.
Given the criticality of chips in the defense and aerospace industries, the United States and the European Union have offered incentives of about USD 100 billion for localisation of semiconductor fabs. As a result, many global players are slated to spend about USD 360 billion towards setting up new facilities, which would be operational by 2025 and 2026.
In the Indian context, demand for chips will continue to increase over the medium term, driven by the gradual rise in EV adoption and growing demand for advanced feature-laden ICE vehicles.
Geely Auto Launches i-HEV Intelligent Hybrid Technology
- By MT Bureau
- April 15, 2026
Chinese automotive major Geely Auto has officially launched its i-HEV Intelligent Hybrid technology, which enters mass production immediately with the system slated for deployment across several models this year, including the Preface, Monjaro, Starray, and the fifth-generation Emgrand.
The technology utilises an artificial intelligence system and a dedicated hybrid powertrain to address historical gaps in fuel efficiency and smart feature integration.
The i-HEV system is built upon the i-CMA architecture, a hybrid-optimised version of the CMA platform that centralises the control of driving, cockpit and chassis functions.
A primary feature is the AI Cloud Power management system, which monitors exterior data such as temperature, humidity and altitude to optimise petrol-electric energy distribution. The company reports that this self-optimising strategy improves energy efficiency by more than 10 percent, while the engine achieves a thermal efficiency of 48.41 percent.
By decoupling the internal combustion engine (ICE) from the electric motor, the i-HEV adopts a motor-led layout designed to provide an electric-drive experience without external charging. The electric motor delivers up to 230kW, allowing the vehicle to operate on electricity for approximately 80 percent of the time. Performance data indicates a claimed zero to 30 kmph acceleration time of 1.84 seconds and a top speed of 66 kmph in electric mode.
The i-CMA architecture incorporates physical separation between oil and electric systems to enhance safety. Battery protection is managed through the Geely Battery Safety System, which includes a liquid-cooled battery with an IP68 resistance rating. The system is capable of real-time prediction for over 50 fault types.
Jerry Gan, CEO, Geely Auto Group, said, “Energy diversification is a strategic foresight for Geely Auto. A company’s true strategic focus is ensuring every path leads to the future, which tests the technological depth and powerful energy resilience of our entire system. The new i-HEV perfectly embodies this resilience, serving as a powerful testament to how artificial intelligence can elevate hybrid efficiency and performance to new industry standards.”
Tsuyo Among Deeptech Delegation To Japan Amid EV Expansion
- By MT Bureau
- April 14, 2026
Tsuyo Manufacturing (Tsuyo), an electric vehicle (EV) powertrain manufacturer, has been named as one of 15 Indian startups selected to represent the country in the deeptech category as part of the CII CIES Startup Delegation to Japan 2026.
The selection allows Tsuyo to engage with Japanese corporations during a period of increased EV expansion in Japan, aiming to establish long-term collaborations in engineering and supply chain integration.
The company specialises in electric powertrain solutions for three-wheelers, light commercial vehicles and heavy commercial applications, with a portfolio ranging from 0.5 kW to 400 kW.
Till date, Tsuyo has sold more than 200,000 motors and maintains partnerships with over 50 original equipment manufacturers (OEMs). The firm operates two manufacturing facilities in Greater Noida and focuses on research and development in collaboration with institutions such as the IITs and NITs.
In addition to its international engagement, Tsuyo recently received Single Window Clearance from the Government of Karnataka for a 20-acre manufacturing and validation campus in the Dharwad–Hubli region. This facility is intended to serve as a hub for the design, testing and large-scale production of powertrain components, reducing the domestic industry’s reliance on imported technology.
Vijay Kumar, Founder and CEO, Tsuyo Manufacturing, said, “Being selected for the CII CIES delegation is a proud moment - not just for Tsuyo, but for the evolution of India’s deeptech ecosystem. At Tsuyo, we see ourselves as a new age EV deep tech startup focused on co-creation, where innovation is built collaboratively across borders. India has the potential to engineer and scale world-class EV powertrain technologies, designed for real-world conditions and global applicability. Japan represents a strong strategic partner with its legacy of engineering excellence and disciplined manufacturing culture. Through this engagement, we aim to explore joint development opportunities, enable deeper supply chain integration, and contribute to the broader ‘Build India’ vision by strengthening local capabilities with global collaboration. Our approach to co-creation goes beyond technology - it extends to building robust supply chains, advancing futuristic mobility solutions, and aligning with the high standards of Japanese engineering. This is how we believe India will transition from being a growing EV market to a globally competitive EV technology hub.”
Ola Electric Intros S1 X+ E-Scooter With In-House 4680 Bharat Cell
- By MT Bureau
- April 13, 2026
Ola Electric has introduced the S1 X+ 5.2 kWh electric scooter, featuring the company’s indigenously developed 4680 Bharat Cell. The company claims that the launch marks the first time this cell technology has been integrated into a mass-market product. The e-scooter is available at an introductory price of INR 129,999 until 15 April.
The S1 X+ 5.2 kWh utilises an 11 kW mid-drive motor and an integrated motor control unit, providing a claimed top speed of 125 kmph and an IDC range of 320 km. It features a brake-by-wire system and front disc brakes. The use of the Bharat Cell reflects the company's strategy of vertical integration, which encompasses cell development, battery pack engineering and vehicle manufacturing.
Currently, Ola Electric’s portfolio includes the Gen 3 S1 scooter series and the Roadster motorcycle range. The S1 Gen 3 line-up consists of the S1 Pro+ and S1 Pro in various battery configurations, while the mass-market segment includes the S1 X+ and S1 X variants. The Roadster series is offered in X+ and X configurations with battery capacities ranging from 2.5 kWh to 9.1 kWh.
“With S1 X+ 5.2 kWh, we are taking our 4680 Bharat Cell to the mass market at scale. The same technology platform we built for our most advanced products is now powering a scooter designed for much wider EV adoption. This is exactly what vertical integration enables - the ability to innovate deeply, scale quickly, and bring our best technology to more and more customers, faster. S1 X+ 5.2 kWh is where performance, range and scale come together, and is another important step towards making EVs accessible to every Indian,” the company said in a statement.
Bosch And Qualcomm Expand Strategic Partnership For ADAS Solutions
- By MT Bureau
- April 12, 2026
Bosch and Qualcomm Technologies, Inc. have announced an expansion of their strategic collaboration to include Advanced Driver Assistance Systems (ADAS). This move builds upon their established partnership in cockpit solutions and aims to address the automotive industry's requirement for scalable technology in automated and connected vehicles.
Bosch stated it has now delivered more than 10 million vehicle computers globally using Qualcomm’s Snapdragon Cockpit Platforms.
The extended agreement includes new production programmes for ADAS that utilise Bosch’s vehicle computer architecture powered by the Snapdragon Ride platform. A central component of this collaboration is the development of platforms that combine cockpit and ADAS functions on a single system-on-chip (SoC).
This integration is designed to align with the strategic shift towards software-defined vehicles, allowing automakers to reduce architectural complexity, power consumption, and manufacturing costs.
The Bosch ADAS integration platform is designed as a modular computer capable of fusing data from multiple sensors to create a 360-degree environment model. This system supports a range of functions from entry-level assistance, such as lane keeping and distance regulation, to higher-level automated driving. The joint engineering efforts have already secured several design wins in the East Asian market, with the first vehicles featuring these consolidated platforms expected to enter the market in 2028.
By migrating from numerous individual control units to a small number of high-performance computers, the partnership provides a path toward centralised vehicle architectures.
These solutions are engineered to meet safety standards up to ASIL-D while enabling consumer features such as hands-free driving and intelligent automated parking across various vehicle segments.
Christoph Hartung, Member of the Bosch Mobility business sector board, said, “By combining leading-edge compute technology with our system integration expertise – hardware, software, and safety – we enable automakers to meet the rising demand for personalised, safe and comfortable driving experiences. The growing success of our collaboration with Qualcomm Technologies underlines a central value Bosch brings to the industry: we provide the robust, high-performance computing platforms that form the backbone of today’s software-defined vehicle.”
Nakul Duggal, EVP and Group GM, Automotive, Industrial and Embedded IoT, and Robotics, Qualcomm Technologies, said, “Our collaboration with Bosch spans the full spectrum of vehicle compute – from high‑performance cockpit systems to scalable automated driving solutions and emerging centralised vehicle architectures – all powered by Snapdragon Digital Chassis automotive platforms. ADAS is where performance and safety must scale in the real world. By expanding our work with Bosch into production-ready ADAS platforms, we’re helping automakers bring advanced driver assistance across vehicle lines more efficiently, with a clear path to centralised compute.”
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