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.

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BYD has updated its warranty terms for the Blade Battery in Europe, increasing the mileage limit to 250,000km while maintaining the 8-year duration. The extension applies to both battery electric vehicles (BEVs) and Super Hybrids and includes a guaranteed State of Health (SOH) of at least 70 percent. This change is retroactive, covering existing owners alongside new customers.

The Blade Battery utilises lithium iron phosphate (LFP) chemistry, which avoids the use of nickel and cobalt. Its design allows cells to act as structural elements, increasing the vehicle's torsional rigidity. This configuration reduces the volume occupied by the battery by 50 percent compared to traditional designs, intended to optimise interior space.

The battery has undergone testing, including nail penetration, where surface temperatures remained below 60deg Celsius. It has also been subjected to overcharge tests, oven tests at 300deg Celsius, and crush evaluations. According to BYD, the battery can exceed 3,000 charge and discharge cycles, indicating a service life of approximately 1.2 million kilometres.

Current models utilising this technology include the BYD SEAL, which reports a range of 570km on the combined cycle and the BYD SEALION 7, capable of DC charging from 30 percent to 80 percent in 18 minutes at a power of 230 kW.

Under the new terms, the specific battery cover sits alongside the standard vehicle warranty of six years or 150,000km. The electric drive unit remains covered for eight years or 150,000km, while the anti-perforation warranty continues at 12 years with unlimited mileage. The extension is designed to address user confidence regarding the longevity of energy storage systems in the European market.

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Suzuki R&D Center India (SRDI), a subsidiary of Suzuki Motor Corporation, has launched the Suzuki e-Micromobility Innovation Lab for Ecosystem (SMILE). Located within the International Automobile Center of Excellence (iACE) in Gandhinagar, Gujarat, the facility functions as a platform to develop Versatile micro e-Mobility (VmeM) solutions.

The laboratory connects technology from Japan with ideas from Indian startups and component manufacturers. The objective is to design mobility systems from a customer perspective and strengthen co-creation within the Indian ecosystem. The VmeM platform, previously announced in Japan as MITRA, was showcased during the Vibrant Gujarat event in Rajkot on 11-12 January before the opening ceremony on 13 January.

SMILE operates within iACE, an institution founded in 2015 by the Government of Gujarat and Maruti Suzuki India. The centre focuses on training and skill development, having provided education to over 10,000 individuals in automotive engineering and mobility systems. The establishment of SMILE follows a memorandum of understanding signed between iACE and SRDI in December 2024.

The lab intends to integrate vehicle manufacturing with technology from the startup sector to address infrastructure needs. Target applications include warehousing, air cargo, manufacturing plants, agriculture, and municipal services.

Katsuhiro Kato, Director and Executive Vice-President, Suzuki Motor Corporation, said, “We are pleased to see the VmeM, designed and developed by Suzuki, introduced in India through Suzuki R&D Center India. The VmeM platform represents Suzuki’s commitment to evolving future mobility. With the launch of SMILE at iACE, we will work closely with Indian industry, startups and government stakeholders to drive co-creation on valuable mobility solutions that support growth and sustainability. We also aim to serve the role as a key base for the global deployment of the VmeM platform by promoting continuous technological development.”

The initiative positions Gujarat as a base for the global deployment of the VmeM platform through ongoing technological development and stakeholder collaboration.

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Steelbird Hi-Tech India, one of the largest helmet and two-wheeler accessories brands, has launched Base X, a smart riding technology integrated into the Steelbird Fighter helmet range. The system is designed to provide connectivity and control for riders while maintaining a focus on safety standards.

The Base X system features a magnetic lock that serves as a power control, activating the device when the buckle is secured and switching it off when removed. The technology includes hands-free music control for track navigation and volume adjustment. It also integrates with voice assistants, allowing users to activate Google Assistant or Siri via a button on the helmet.

The technology offers three riding modes – Glide, Beast and Relax – which can be toggled using a dedicated button. For visibility, the system includes customisable rear indicator lights. The unit is powered via a Type-C charging port and provides up to 48 hours of playback.

The Fighter helmet housing this technology uses a high-impact shell design and a ventilation system. The product is priced at INR 5,999, aiming to make smart features accessible within the Indian market.

Rajeev Kapur, Managing Director, Steelbird Hi-Tech India, said, “Riding today is not just about reaching a destination — it’s about the experience along the way. With Base X, Steelbird is introducing a new era of smart riding technology that allows riders to control essential functions effortlessly while staying focused on the road. This innovation reflects our vision of blending safety, comfort, and technology into every ride.”

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SiMa.ai and Kaynes Semicon have announced a strategic partnership to develop hardware and software for physical AI. The collaboration focuses on localising semiconductor packaging in India to improve supply-chain resilience and market delivery times.

The partners will deliver electronic systems for industries including industrial automation, robotics, automotive, aerospace and defence. Kaynes Semicon will utilise its assembly and testing capabilities to produce reference boards for SiMa.ai’s machine learning system-on-chip (MLSoC) platforms. This hardware is intended to allow system integrators to deploy AI inference technology at the edge and move from proof-of-concept to commercialisation.

The partnership includes the joint delivery of AI solutions for mission-critical requirements in smart vision, surveillance, and autonomous systems. This initiative supports the Atmanirbhar Bharat vision by fostering research, development and custom product innovation for strategic sectors in India.

Krishna Rangasayee, CEO and Founder, SiMa.ai, said, “India’s engineering talent and manufacturing scale are fundamental to our mission of democratising edge machine learning. This partnership with Kaynes Semicon aligns perfectly with SiMa.ai’s commitment to deliver effortless ML for every industry, from defence to industrial automation and beyond. Together, we are setting new benchmarks in making India a global force in physical AI".

Raghu Panicker, CEO, Kaynes Semicon, added, “Collaborating with SiMa.ai marks a significant leap forward for India’s semiconductor ecosystem. By fusing Kaynes’ advanced OSAT and manufacturing capabilities with SiMa.ai’s world-leading AI at the edge, we’re empowering critical industries to innovate at scale. This partnership is not just about technology – it’s about building a trusted supply chain, delivering value for our customers, and shaping the future of electronics manufacturing in India and worldwide”.

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