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!

CarYaar Auto Private Limited, a DPIIT-recognised technology startup, has announced the appointment of Sahaib Singh as its new Co-Founder and Head of Technology. The company, which operates within India’s fragmented car servicing ecosystem, is focused on integrating transparency and digital trust into the automotive aftermarket. Singh’s arrival marks a pivotal moment for the firm as it works to expand its technological infrastructure and formalize a sector traditionally characterised by informal practices.

Bringing over a decade of experience as a full-stack technologist across mobility, freight and artificial intelligence platforms, Singh will now spearhead the company’s technology strategy and product development. His leadership comes at a critical juncture as CarYaar advances its integrated digital platform, which aims to seamlessly connect car owners, workshops and other stakeholders within the automotive service network. The company is prioritising practical solutions over complex enterprise systems, developing a mobile-first, offline-capable and WhatsApp-native interface to ensure accessibility for multi-brand workshops and customers alike.

Under Singh’s technical direction, the platform is being tailored to serve three distinct user groups with specific operational tools. Workshops are equipped with digital job cards, photo-based inspections, parts tracking and billing systems, while service advisors and managers receive web-based applications for estimate creation and analytics. For car owners, the service enables booking, real-time job tracking and digital payments through WhatsApp, eliminating the need for a separate application. The overarching goal is to use technology not merely to digitise existing processes but to fundamentally enhance the relationship between vehicle owners and service providers.

CarYaar’s model emphasises transparency through features such as real-time photo documentation, pre-approved estimates and digital billing, offering customers clear visibility into their vehicle’s service journey. Currently operating with a network of certified empanelled workshops in the Mumbai Metropolitan Region, the startup is actively building a broader technology-enabled ecosystem that includes multi-brand services, roadside assistance and spares management. This strategic expansion reinforces the company’s commitment to developing simple, accessible and genuinely useful technology for the Indian workshop environment.

Joel Daniel D’Souza, Co-Founder & Director, CarYaar Auto Private Limited, said, “Sahaib brings a strong combination of technology depth and experience across mobility and emerging technology platforms. As we scale CarYaar, technology will be central to how we connect customers and workshops, create transparency and bring greater efficiency to the entire ecosystem. His leadership will be critical as we move from building the foundation to scaling the platform.”

Comments (0)

ADD COMMENT

Link Copied!

Tata Communications and Tata Motors Passenger Vehicles have entered into a collaboration to equip the Sierra.ev with embedded 5G cellular connectivity, targeting the deployment of software-defined vehicles (SDVs) in India.

As per the understanding, the Tata Communications MOVE Connected Vehicle Platform will integrate into the car's software architecture, designated as N.IO. The system supports artificial intelligence applications, content streaming, over-the-air software updates, optional subscription packages and vehicle functions including emergency calls, remote assistance and real-time diagnostics.

Vivek Manglik, Executive Vice-President of Interaction Fabric at Tata Communications, said, “Tata Motors Passenger Vehicles has consistently set benchmarks for innovation in the automotive industry, and we are excited to collaborate on the launch of the Sierra.ev. As vehicles evolve into intelligent ecosystems that enable a growing range of services and applications, the underlying digital fabric will be central to fostering innovation and scaling new capabilities. This collaboration reflects a shared commitment to shaping a smarter mobility experience that will securely enhance convenience and personalisation.”

Sven Patuschka, CTO, Tata Motors Passenger Vehicles, said, “As vehicles become increasingly software-defined, highly intuitive digital connectivity and services will play a central role in shaping customer experiences. The Sierra.ev marks an important step in this evolution, and our collaboration with Tata Communications provides the robust digital backbone required to deliver seamless connectivity, continuous innovation, and enhanced in-vehicle experiences. Together, we are enabling technologies that allow vehicles to adapt, improve, and deliver greater value throughout their lifecycle.”

Comments (0)

ADD COMMENT

Link Copied!

Tata Consultancy Services has entered into an agreement with Porsche to acquire 100 percent of MHP Management- und IT-Beratung, the car maker's management and IT consulting subsidiary.

The transaction remains subject to regulatory and antitrust approvals and is expected to close in the coming months.

Furthermore, the acquisition is paired with a 5-year strategic agreement between TCS and Porsche to deploy artificial intelligence (AI) technologies across the automaker's value chain.

As per the understanding, MHP will operate as an independent consulting firm and retain its brand identity within TCS, combining MHP's automotive consulting operations across Europe with TCS's engineering, cloud and AI infrastructure.

Federico Magno, Group CEO, MHP, said, “MHP’s sweet spot has always been where entrepreneurial thinking, deep industry expertise and technology come together to make transformation happen. With TCS, we are bringing together MHP’s deep automotive and industrial capabilities with global scale, AI, engineering and technology expertise. This gives us an even stronger platform to accelerate our next chapter – with more capabilities, more reach and greater impact for our clients. Most importantly, it creates new opportunities for our people and clients to shape the future of industry.”

K Krithivasan, CEO and MD, Tata Consultancy Services, said, “TCS is pleased to partner Porsche in its transformation journey. As AI, software and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering and technology and business transformation with MHP’s strong automotive consulting expertise. Together, we will industrialise AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future.”

As part of the multi-year deal, TCS and MHP will establish an AI Mobility Centre of Excellence to develop and deploy artificial intelligence systems for manufacturing, engineering, supply-chain operations, and customer service applications.

Dr Michael Leiters, CEO and Chairman of the Executive Board, Porsche AG, said, “Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services. At the same time, we are gaining a strategic partner in TCS. By combining Porsche's automotive expertise with TCS's digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency and boost our competitiveness in an increasingly data- and software-driven world of mobility.”

The move enables Porsche to focus resources on its core vehicle operations while retaining MHP and TCS as external technology partners for its IT and digital transformation requirements.

Comments (0)

ADD COMMENT

Link Copied!

Delhi NCR-headquartered electric vehicle company Omega Seiki Mobility (OSM) has partnered Electra AI to integrate battery health monitoring across its fleet operations.

The collaboration incorporates Electra AI’s analytics platform into OSM’s electric commercial vehicles. The technology enables real-time tracking, predictive maintenance and state-of-health diagnostics for battery packs. The data metrics aim to support warranty management, optimise vehicle uptime, assist financing assessments and provide residual value tracking for secondary market sales.

Uday Narang, Founder and Chairman, Omega Seiki Mobility, said, "The next phase of EV growth in India will not be driven solely by new vehicle sales, but by the creation of a credible and thriving secondary market. Battery health is the single biggest determinant of an EV's residual value, and until that can be measured transparently, the used EV market will remain constrained. Through our partnership with Electra AI, we are bringing unprecedented visibility into battery performance, enabling buyers, financiers, and fleet operators to make informed decisions with confidence. This will help improve resale values, unlock greater access to financing, and accelerate the adoption of electric mobility by ensuring that EVs remain valuable assets throughout their lifecycle."

Vivek Dhawan, Chief Strategy Officer, Omega Seiki Mobility, said, “As electric mobility scales, the industry must move beyond selling vehicles and focus on delivering intelligence that improves asset performance throughout its life. By integrating Electra AI's advanced analytics into our ecosystem, we will gain deeper operational insights that help enhance fleet productivity, reduce unplanned downtime, strengthen warranty management, and support data-driven product development. This collaboration represents an important step towards building a smarter, more efficient, and technology-led mobility ecosystem that creates tangible value for customers, partners, and stakeholders alike."

Fabrizio Martini, Co-Founder and Chief Executive Officer, Electra AI, stated: “Vehicle makers like OSM are being asked to put more capable, more affordable EVs on the road every year — and to stand behind them with confidence. Our AI Brain for Batteries platform gives them the real-world intelligence to do exactly that: design better vehicles, offer stronger assurance to their customers, and keep fleets running. That’s what battery intelligence is for — turning data into trust across the whole ecosystem, from the OEM to the financier to the operator.”

The deployment aims to support commercial fleet operators across India by reducing maintenance delays and improving total cost of ownership visibility.

Comments (0)

ADD COMMENT

Link Copied!