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!

Volvo Cars has earned the highest possible rating for software-defined vehicle (SDV) capabilities from S&P Global Mobility, standing alone among legacy automakers as the only one to achieve a Level 5 designation. This top-tier ranking underscores the company’s capacity to enhance nearly all aspects of a vehicle throughout its lifespan, delivering greater long-term value to customers. Through over-the-air (OTA) updates, Volvo can introduce new safety functions, accelerate charging speeds, extend driving range and refine the overall user experience.

The transition to software-defined vehicles represents a transformative leap for Volvo, empowering its cars on the road to continuously evolve and setting a new benchmark for safety. As part of its most significant technological overhaul in nearly a century, the company now leverages real-world data to generate insights that inform the development of future safety and driver assistance systems.

Central to this capability is HuginCore, Volvo’s internally developed core system. Featuring a sophisticated electrical architecture, a central computing platform, zone controllers and integrated software, HuginCore is the foundation of the company’s three software-centric models: the EX90, ES90 and EX60. This architecture enables scalable enhancements, faster innovation cycles and superior experiences across the entire vehicle lineup.

S&P Global Mobility, a premier provider of automotive intelligence, offers the comprehensive data and expert analysis that informed this evaluation, assisting the industry in making more informed, lower-risk decisions.

Håkan Samuelsson, CEO, Volvo Cars, said, “Years of focused engineering efforts and investments have given Volvo software capabilities that only a select few in the industry have achieved. This has enabled us to deliver a step change in customer experiences and development speed.”

Comments (0)

ADD COMMENT

Link Copied!

Marelli has developed an AI-driven System Test Generation (STG) Agent in collaboration with Amazon Web Services (AWS). The tool automates the creation of system test cases from engineering requirements, addressing a traditionally labour-intensive phase of the automotive validation cycle.

The STG Agent was developed alongside the AWS Generative AI Innovation Center and utilises Amazon Nova foundation models, Amazon Bedrock Knowledge Bases and the Strands Agents framework.

The system is designed to integrate with existing requirement management tools and automotive engineering workflows. By automating the analysis of system requirements, the tool identifies expected behaviours and generates structured, traceable test cases to verify that product features align with customer specifications.

As vehicle platforms transition toward software-defined architectures, engineering teams must manage increasing volumes of data and specifications. The STG Agent aims to reduce validation time for new vehicle functionalities, improve consistency in product behaviour across global programmes and accelerate product development for vehicle manufacturers.

Daniele Russo, Head of System Performance Optimisation in Marelli’s Electronics Engineering team, said, “The STG Agent represents an important step forward in how we validate solutions for software-defined vehicles. By combining our engineering expertise with advanced AI capabilities from AWS, we significantly accelerate validation cycles and ensure consistent quality across global programs. This solution enables us to support our customers faster and more efficiently, strengthening the foundation for the next generation of software-defined vehicles.”

Giulia Gasparini, Country Leader of AWS Italia, commented, "Marelli's approach to automating system validation demonstrates the transformative potential of generative AI in automotive engineering. By leveraging Amazon Nova foundation models and Amazon Bedrock, companies are setting new standards for how software-defined vehicles are developed and validated. This solution shows how advanced AI can accelerate innovation while maintaining the rigorous quality and safety requirements that define the automotive industry."

Comments (0)

ADD COMMENT

Link Copied!

Nawgati, an Indian fuel-tech company, has been named the title sponsor for the 2026 Annual General Meeting (AGM) of the Petrol Dealers Association Pune (PDAP). The association represents over 900 petroleum dealers within the Pune district.

The AGM is scheduled for 21 March 2026 at the Hotel Westin Koregaon Park, Pune. The event includes an industry exhibition designed to showcase technological solutions and services within the petroleum retail value chain.

Attendees will include senior bureaucrats, officials from oil marketing companies and representatives from dealer associations across Maharashtra. The gathering focuses on the convergence of digital innovation and existing fuel retail infrastructure.

Nawgati is utilising the platform to highlight Aaveg for Dealers, an operating system developed for fuel retailers. The platform integrates several operational functions into a single interface: real-time accounting and inventory management, sales intelligence and automated invoicing, digital contracts and credit control systems.

The company currently operates across India and has established subsidiaries in the UAE and Sri Lanka to scale its connected fuelling ecosystem.

Vaibhav Kaushik, Co-Founder & CEO, Nawgati, said, “The Petrol Dealers Association Pune AGM is bringing together stakeholders who are directly involved in these discussions through this Annual General Meeting, and Nawgati is pleased to support a platform that encourages meaningful exchange within the sector, as such conversations are important in shaping practical solutions that benefit both dealers and consumers.”

Aalaap Nair, Co-Founder, Nawgati, added, “Through Aaveg for Dealers, we are introducing an all-in-one operating system designed specifically for modern fuel retailers. It brings together real-time accounting, inventory management, and sales intelligence into a single, seamless platform. By enabling greater control over credit, customers, and cash flow, supported by smart insights, automated invoicing, and digital contracts, Aaveg is simplifying operations and helping dealers run more efficient, scalable fuel businesses.”

Dhruv Ruparel, President of the Petrol Dealers Association Pune, stated, “The Annual General Meeting serves as an important forum for the dealer community, as it gives us a platform to engage on operational and industry-related developments. Nawgati’s association this year as the “title sponsor” reflects the increasing role of tech-led solutions in fuel retail, which is strengthening these operations. We are looking forward to constructive discussions that support the sector’s continued progress.”

Comments (0)

ADD COMMENT

Link Copied!

Japanese technology company TIER IV and Isuzu Motors have announced the deployment of Level 4 autonomous buses using the Nvidia Drive Hyperion computing platform. The technology will be integrated into Isuzu ERGA electric and diesel models, featuring the Nvidia Drive AGX Thor system-on-chip (SoC) to provide safety and performance redundancy.

The autonomous transit vehicles combine TIER IV’s Level 4 software stack, based on the open-source Autoware platform, with Isuzu’s vehicle architecture and Nvidia’s AI compute. The objective is to create high-capacity public transit solutions capable of scalable deployment.

The system is designed to be hardware-agnostic and fail-operational, addressing operational requirements for public services and national challenges such as driver shortages.

Shinpei Kato, Founder and CEO, TIER IV, said, “This collaboration marks a definitive milestone for autonomous transit. By fusing Isuzu’s legendary engineering with NVIDIA’s Thor AI compute, we have built an unmatched foundation for Level 4 transit driven by Autoware. Unveiling this Level 4 autonomous bus deployment at Nvidia GTC 2026 proves that when you combine world-class hardware with the power of the Autoware ecosystem, safe and scalable public transit is no longer a goal – it is a reality.”

Hiroshi Sato, Senior Executive Officer and Vice-President, Engineering Division, Isuzu, commented, “Our partnership with TIER IV and Nvidia represents a significant leap in commercial vehicle intelligence. Deploying Level 4 autonomous driving on both our ERGA EV and diesel models ensures that we provide versatile, sustainable, and highly efficient solutions for any fleet. We are bringing Isuzu’s world-renowned reliability to the autonomous age, ensuring safe and high-performance transit at scale.”

Rishi Dhall, Vice-President of Automotive, NVIDIA, added, “The transition to highly automated commercial transport demands fail-operational, high-performance computing without compromise. TIER IV and Isuzu are frontrunners in the public transit vertical, utilizing Nvidia Drive AGX Thor on the Drive Hyperion platform in the Isuzu ERGA to power TIER IV’s Autoware-based Level 4 software stack. Their scalable solution addresses critical real-world needs, such as Japan’s national driver shortage, while delivering the operational rigor necessary for essential public services.”

Comments (0)

ADD COMMENT

Link Copied!