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.

Comments (0)

ADD COMMENT

Link Copied!

TSUYO Manufacturing Pvt Ltd has appointed Naveen Kumar Amar as Senior Vice President of Finance, effective 1 April 2026. Recognised as a global finance power leader, Amar brings over 20 years of expertise in financial strategy, corporate governance and operational efficiency within capital-intensive industries. His arrival marks a strategic move as the company accelerates growth in the EV powertrain sector.

Before joining TSUYO, Amar was CFO at SpiceXpress, where he led financial restructuring, cost optimisation and drove digitisation projects. He also managed international and domestic fundraising across equity and debt. At TSUYO, he will oversee financial planning, capital allocation, and governance as the company scales manufacturing and deepens EV powertrain investments.

The company recently secured Single Window Clearance from Karnataka Government for a proposed 20-acre EV Powertrain Campus in the Dharwad–Hubli region, a hub for design, testing and production. Last month, TSUYO launched next generation electric motor technologies for India’s light commercial vehicle market, emphasising modular design, deep engineering and Make in India innovation.

The leadership team welcomed Amar, stating his appointment strengthens alignment of capital strategy with long term objectives. TSUYO is also investing in advanced manufacturing infrastructure and localisation of key EV components to reduce import reliance and bolster the domestic EV ecosystem.

Amar said, “I am excited to join Tsuyo at a crucial moment in its growth journey, as the company scales its manufacturing capabilities and strengthens its position in India’s evolving electric mobility ecosystem. With experience across diverse, capital-intensive sectors, I see immense opportunity in building a financially disciplined, execution-focused organisation that can sustain high growth over the long term. The company’s focus on the convergence of deep technology, localisation and large-scale manufacturing presents a unique platform for creating enduring value. I look forward to partnering with the leadership team to enable Tsuyo’s ambition of becoming a globally acclaimed EV powertrain company."

Comments (0)

ADD COMMENT

Link Copied!

German automotive luxury brand Audi has launched the new RS 5, featuring a high-performance plug-in hybrid system and a rear transaxle equipped with electromechanical torque vectoring. Marketed as quattro with Dynamic Torque Control, this system manages transverse torque distribution between the rear wheels within 15 milliseconds.

The system enables torque shifts between the rear wheels regardless of the power applied. Unlike mechanical equivalents, it operates during throttle application, off-throttle states and under braking.

It features a High-Voltage Actuator that uses a water-cooled permanent-magnet 400-volt electric motor providing 8 kW and 40 Nm of output. Overdrive Gears components use actuator torque to transfer differences of up to 2,000 Nm to the driveshafts.

The differential consists of a conventional unit with a low lock percentage that distributes applied torque to the left and right shafts.

The technology is designed to reduce understeer and oversteer by directing torque to the wheel with the most grip. If the vehicle begins to oversteer in a bend, the system increases torque at the inside wheel to provide stability. Conversely, it reduces torque at the inner wheel to prevent understeer, redirecting power to the outer wheel for traction.

Control is centralised via the HCP1 (High-Performance Computing Platform), which harmonises driver inputs with environmental data. This platform interprets steering intentions to provide unfiltered transfer to the wheels.

• Electromechanical torque vectoring at the rear axle works in conjunction with front-axle supports:
• Electronic Differential Lock: Enhances front-axle traction via the brakes.
• Brake Torque Vectoring: Provides additional front-end assistance.
• Adaptive Shock Absorbers: The twin-valve units are calibrated with the rear transaxle to improve throttle response and corner entry.

The system allows for customisable driving characteristics through various drive select modes, ranging from a balanced setup to a rear-biased configuration. Audi states the ‘fixed coupling’ of this electromechanical solution ensures torque distribution remains independent of drive torque, a distinction from clutch-based torque splitters.

Comments (0)

ADD COMMENT

Link Copied!

International Motors and Ryder System have commenced a joint autonomous truck pilot, integrating a factory-produced autonomous vehicle (AV) into live freight operations. Ryder is the first participant in the manufacturer's autonomous fleet trial programme.

The pilot operates on a daily 600-mile (965km) route along the I-35 corridor between Ryder locations in Laredo and Temple, Texas. The vehicle used is an International LT Series truck equipped with the S13 Integrated Powertrain.

The autonomous trucks will use factory-installed suite including LiDAR, radar and cameras. AI-based SuperDrive autonomous driving software provided by PlusAI. They are designed to operate within existing infrastructure without the requirement for dedicated autonomous terminals.

Initial data from the trial indicates 100 percent on-time delivery and 92 percent autonomous route coverage, conducted under the supervision of a human safety driver. Pre-trip inspections have been completed in under 30 minutes and the company reports improvements in fuel efficiency.

The pilot project aims to validate autonomous technology within an active long-haul logistics network. Identify value propositions for long-haul transport. Gather operational feedback to finalise product features for commercial launch. Collect data on uptime, serviceability and terminal processes.

James Cooper, Head of Autonomous Solutions, International, said, "In partnering with fleet customers to determine path-to-deployment, we're focused on integrating factory-ready virtual driver software into existing transport operations, without the need for dedicated autonomous terminals. The mission is to deliver a quality, OEM-validated solution to ensure our customers receive the reliability and valued experience they trust from International. As an OEM, our target is to provide our customers with an end-to-end solution including vehicles, digital solutions, and operational support services, allowing customers to operate directly from their existing infrastructure and minimising additional complexity. Ryder's participation underscores our shared commitment to practical autonomous fleet deployment. Together, we're working to turn pilots into scalable, commercial solutions."

Seth deVlugt, Senior Director of RyderVentures and New Product Strategy, Ryder, added, "For Ryder, this pilot represents an important step forward—moving beyond terminal- and maintenance-focused trials to evaluating autonomy in live operations. The insights we gain here will help us further understand how autonomy could potentially be applied across portions of the supply chain. Autonomy is informed by real-world operational experience, not test tracks. Operating an AV in an active logistics network with the supervision of a safety driver allows us to validate the technology where it matters most – on a real lane, moving real freight, for a real customer."

Comments (0)

ADD COMMENT

Link Copied!

Versigent has completed its separation from Aptiv PLC and launched as an independent, publicly traded company on the New York Stock Exchange.

The separation was finalised through a tax-free spin-off. Aptiv shareholders of record as of 17 March 2026 received one Versigent share for every three Aptiv shares held.

Versigent operates as a provider of signal, data and power distribution systems. In 2025, the business recorded revenue of USD 8.8 billion, net income of USD 528 million and adjusted EBITDA of USD 893 million.

The company maintains engineering centres on four continents and manufacturing operations in more than 25 countries. Its core business focuses on the design and delivery of low- and high-voltage electrical architectures for various end markets.

Versigent has established a financial target to reach USD 1 billion in free cash flow by 2028. Management expects to expand EBITDA margins by more than 200 basis points over the next three years, supported by revenue growth exceeding 3 percent.

Joseph Liotine, CEO, Versigent, said, “Today marks an important milestone as Versigent begins its next chapter as an independent company built on a century of leadership in advanced power distribution solution systems. As demand grows for greater capability with less complexity, our unmatched combination of engineering expertise, advanced manufacturing excellence, and global scale gives us a distinct advantage. Versigent is purpose-built to amplify our customers’ urgent needs to power smarter, faster, and safer features without compromise.”

Doug Ostermann, CFO, Versigent, added, “Versigent is well positioned to unlock greater value as we enter the public markets. We launch with clear priorities and a strong financial profile, including top-line revenue growth of more than three percent and industry-leading double-digit EBITDA margins that we expect to expand by more than 200 basis points over the next three years. Our business is globally scaled, highly engineered and consistently cash-generative, with a path to $1 billion in free cash flow by 2028. Through a balanced and disciplined capital allocation strategy, we are investing thoughtfully in the business while prioritizing attractive returns for shareholders.”

Comments (0)

ADD COMMENT

Link Copied!