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!

Taiwan-based XING Mobility has announced it will showcase its immersion-cooled battery technology across three sectors – Electric Vehicles (EV), Energy Storage Systems (ESS) and AI data centres – at CES 2026.

XING Mobility’s technology is featured in Project V, an all-electric sports car from the British brand Caterham. The vehicle uses module-free, cell-to-pack (CTP) immersion cooling to manage thermal loads while maintaining a lightweight profile. A production prototype is scheduled for a global debut at the Tokyo Auto Salon 2026.

Royce YC Hong, Founder and CEO, XING Mobility, said, "When we began building these solutions, the world had not yet fully recognised the problems ahead. As voltage levels and power density continue to rise, the challenge is no longer just about cooled batteries, it is about solving safety, efficiency and system architecture together. XING Mobility’s immersion cooling enables every critical component of the battery system to operate within the same controlled environment, with thermal management fully integrated into the system design. At CES 2026, what we are presenting is a high-voltage power platform centred on ultra-high safety and ultra-high efficiency, capable of simultaneously supporting EV, ESS and AI data centre BBU.”

Comments (0)

ADD COMMENT

Link Copied!

HMC E-Valley (HIVE) and KPIT Technologies have signed a Memorandum of Understanding (MoU) to establish an Independent Centre of Excellence (CoE) in Delhi-NCR. The facility will provide design and engineering services for global micromobility and L-category electric vehicle (LEV) manufacturers, including those producing e-bicycles.

The partnership targets the multimodal mobility market, specifically first-mile and last-mile connectivity solutions such as e-scooters. Industry data indicates that over 50 percent of current travel occurs within these last-mile segments.

The collaboration combines manufacturing and software expertise to develop LEV platforms.

As per the understanding, HIVE will manage business development, client engagement, prototyping and manufacturing enablement. While KPIT will lead solutioning, engineering delivery, programme management, design and software systems integration.

The CoE is designed to create end-to-end capabilities for the LEV segment, utilising KPIT’s mobility technology and HIVE’s manufacturing and supply chain infrastructure.

Pankaj M Munjal, Chairman, Hero Motors Company, said, “The light electric vehicle industry is at a pivotal juncture, demanding a fusion of cutting-edge hardware and smart software. This partnership with KPIT is a powerful convergence of those forces, signifying HIVE’s deep commitment to redefining urban mobility by delivering the next generation of high-quality, sustainable micromobility solutions globally.”

Kishor Patil, CEO & Managing Director, KPIT Technologies, said, “The future of mobility, even at the micromobility level, is defined by intelligent software and seamless systems integration. KPIT’s deep domain expertise in mobility technology will be crucial in equipping the Center of Excellence to develop world-class, cost-effective, and safe LEV platforms. We are excited to combine our software leadership with HIVE’s manufacturing excellence to accelerate the journey toward safer, smarter, and cleaner transportation.”

The agreement aims to accelerate the development of LEV solutions for the global market by integrating AI-driven mobility software with scalable manufacturing.

Comments (0)

ADD COMMENT

Link Copied!

Harman International, a subsidiary of Samsung Electronics, has entered into a definitive agreement to acquire the Advanced Driver Assistance Systems (ADAS) business from ZF Group for EUR 1.5 billion.

The acquisition includes ZF's automotive compute solutions, cameras, radars and ADAS software. Approximately 3,750 employees across Europe, the Americas and Asia are expected to transfer to Harman upon completion of the deal, which is scheduled for the second half of 2026.

The move is part of Harman’s strategy to transition towards software-defined vehicles (SDV). By combining ZF’s ADAS technology with its own digital cockpit products, Harman aims to develop centralised compute platforms. This architecture is intended to link safety and assisted driving functions with in-vehicle connectivity and intelligence on a shared platform.

The integration is designed to reduce system complexity for car manufacturers (OEMs), allowing for more efficient innovation cycles and the scaling of context-aware vehicle experiences.

Christian Sobottka, CEO and President, Harman’s Automotive Division, said, “The industry is at an inflection point where safety, intelligence, and in-cabin experience must come together through a unified computing architecture. With this agreement, we take a strategic step to expand our portfolio with complementary ADAS capabilities that unlock a new class of cross-domain experiences ranging from perception-informed audio cues to more personalized, situation-aware driving. Combined with Harman’s long-standing automotive expertise and supported by Samsung’s broader technology leadership, this positions us to help OEMs design the next generation of intelligent, empathetic, and connected vehicles.”

Mathias Miedreich, CEO, ZF Group, said, “With Harman, we have found the ideal partner to fully unlock the growth and innovation potential of our ADAS business. At the same time, this deal makes an important contribution to reducing our company’s debt and allows us to focus our resources on the core technologies in which ZF is a global leader.”

Young Sohn, Chairman of the Board at Harman, added, “Since acquiring Harman in 2017, the company has scaled its automotive and audio business from USD 7 billion to more than USD 11 billion today. Adding ZF’s ADAS capabilities builds on that momentum. Harman will further expand its technology foundation to deliver safer, more intelligent, and more intuitive in-vehicle experiences. This acquisition reinforces Harman’s leadership in the industry’s transformation and underscores Samsung’s long term commitment to the future of mobility.”

Following the close of the transaction, Harman will align its engineering and ADAS teams to accelerate the development of next-generation platforms. The companies have committed to maintaining support for existing programmes during the transition period. Carolin Reichert, Chief Strategy Officer of HARMAN, noted that the deal represents a ‘major milestone’ and demonstrated the company's ability to execute a ‘complex carve-out.’

Comments (0)

ADD COMMENT

Link Copied!

Pioneer Corporation has announced it will unveil Pioneer Ride Connect, a user experience (UX) solution for motorcycles, at CES 2026 in Las Vegas. The system is designed for the production of connected clusters and relies on software updates to provide features to riders.

The solution is the result of a technology collaboration with HERE Technologies. It integrates the HERE SDK, a cloud-based mapping and navigation kit covering more than 120 countries, to provide location-based services for the global two-wheeler market.

Pioneer Ride Connect incorporates several technologies intended to manage hardware costs and smartphone battery life:

• BLE-based Screen Projection: The system uses Bluetooth Low Energy (BLE) to project map images and service information from a smartphone onto the onboard cluster. This method reduces the processing power required by the motorcycle's hardware and lowers smartphone power consumption.
• HMI and AI Integration: The platform features Voice Tap, a voice-based Human-Machine Interface (HMI) for hands-free operation. Edge AI is used to share real-time traffic, weather and hazard data.
• Global Navigation: Through the HERE SDK integration, the system provides routing and traffic information optimised for motorcycles. It includes an offline mode for use in areas with limited network connectivity.

The development follows a partnership between Pioneer and HERE Technologies established in December 2024. The HERE SDK allows for the development of location-aware applications featuring routing and geocoding services across Android, iOS and Flutter platforms.

Pioneer stated that the integration of these technologies serves as a foundation for providing connected services to two-wheeler manufacturers and riders globally.

Seiji Tanezawa, Executive Officer of Pioneer, in charge of business development and strategic alliances, said, “Pioneer Ride Connect is a revolutionary platform that continuously provides software-based upgrades to motorcycles’ UX. By combining Pioneer’s industry-leading expertise in designing a compelling UX with HERE Technologies’ globally accessible Location Intelligence platform, Pioneer Ride Connect transforms the concept of smarter and safer connected two-wheelers into a tangible reality. I’m delighted to unveil our leading-edge technology and ambitious vision at the upcoming CES 2026.”

Deon Newman, Senior Vice-President & General Manager, Asia Pacific, HERE Technologies, said, "Pioneer’s ‘Ride Connect’ brings a smarter, safer motorcycle experience to life - and we’re proud to power it with HERE SDK. Together, we’re making connected services accessible to riders across global markets, with reliable navigation and motorcycle‑optimised routing that work in dense cities to remote mountain roads. It's a meaningful step forward for connected mobility.”

Comments (0)

ADD COMMENT

Link Copied!