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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VI-grade has announced the installation of its HyperDock cockpit at Multimatic’s Vehicle Dynamics Centre in Novi, Michigan. This deployment marks the first instance of HyperDock technology in North America. The system upgrades an existing DiM250 driving simulator, installed in 2020, into a platform capable of simultaneous vehicle dynamics and NVH (Noise, Vibration, and Harshness) development.

The HyperDock consists of a carbon-fibre cockpit designed to increase stiffness and reduce inertia. By removing the traditional top disk in favour of a direct actuator interface and integrated vibro-acoustic feedback, the system allows engineers to assess ride, handling and acoustics within a single environment.

The upgrade introduces ‘full-spectrum’ simulation, which bridges the gap between high-frequency vibration testing and low-frequency motion cues.

• Construction: Lightweight carbon-fibre frame.
• Interface: Direct actuator connection to minimise signal delay and mechanical loss.
• Feedback: Integrated tactile and audio systems for vibro-acoustic realism.
• Application: Simultaneous tuning of vehicle handling and interior cabin noise.

Peter Gibbons, Technical Director – Vehicle Dynamics, Multimatic, said, “After evaluating the VI-grade HyperDock Full Spectrum Simulator cockpit at the SimCenter Udine over a year ago, Multimatic quickly realized that it would provide a significant step forward in the fidelity of all DiM applications, from road car ride tuning to race car limit handling. The overwhelmingly positive responses from Murray White, Technical Director of Vehicle Development at Multimatic, and Dirk Müller, professional race car driver, affirmed Multimatic’s decision to upgrade to HyperDock. The added immersion, superior tactile feedback, and audio advancements have moved the goalposts well beyond our expectations. Multimatic looks forward to continuing to leverage the impressive capabilities of HyperDock over the coming years.”

Alessio Lombardi, Global Sales Director – Simulation, VI-grade, added, “With the addition of HyperDock, Multimatic now benefits from full-spectrum simulation capability, expanding the scope of development activities that can be performed on an already well-established simulator platform. This installation represents an important milestone for VI-grade, as it brings HyperDock technology to North America for the first time.”

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Postponed from December 2025 to February 2026, the ADAS Show 2026 by Aayera was a combination of stalls where diverse players from the field of ADAS or autonomous driving highlighted their latest developments. There were live demo sessions that saw the use of passenger vehicles, trucks and dummies to highlight the technological prowess in the field.

Held at ARAI’s newest testing and certification facility for ADAS and other modern automotive technologies at Takwe (Pune), the show saw experts speak about the autonomous future in panel discussions, presentations etc. Live demos highlighted progress on the computing and vision front; on the software front, underlining certain zest.

In his inaugural address, Dr Reji Mathai, Director, ARAI, spoke about the motive behind setting up an ADAS testing facility at Takwe. Observing that tracks never give returns to draw attention to the decision of setting up an ADAS testing track at Takwe (the newest yet by ARAI), Dr Mathai informed that ARAI participates at the UN level in regulation forming.

Dr Mathai; Elie Luskin, Vice President – India and China, Mobil Eye, and Nina Roeck, Vice President – Software Engineering (Drive & Comfort), Ampere (Renault Group), were united in their expression about India’s unique traffic and driving conditions. The trio stressed on localisation of ADAS system parts such as sensors; on local engineering and development, and on local testing and validation.

“In India, the conditions are different and the effort therefore is to focus on perception, alerts and interventions that consider the local driving condition,” said Roeck.

Asserting that India’s expanding auto market has disproportionately low ADAS. Luskin explained, “ADAS would become mainstream as India’s GDP per capita grows.

Apurbo Kirty, Head – Electrical & Electronics, ERC, Tata Motors, focused on advanced driver assistance in CVs in his address. He referred to road challenges in India, road accident statistics and the challenges for ADAS implementation in terms of SAE autonomy levels, regulations like GSR 834 and how ADAS is a necessity rather than just a tech upgrade.  

Touching on the complexity of landscape of Indian road conditions, Abijit Sengupta, Head of Business – SAE and India, HERE Technologies, spoke about vehicle safety trends such as connected vehicles, autonomous, shared services and electrification.

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Changan Automobile and CATL have unveiled the first mass-production passenger vehicle equipped with sodium-ion batteries. The vehicle, showcased at the 'Changan SDA Intelligence Milestone Release', is scheduled for market release by mid-2026. CATL, acting as the strategic partner for the project, will supply its Naxtra sodium-ion batteries across Changan’s brands, including Avatr, Deepal, Qiyuan and UNI. The partnership introduces a dual-chemistry approach to the market, utilising sodium-ion alongside lithium-ion technologies.

CATL's Naxtra battery reaches an energy density of 175 Wh/kg. Utilising a Cell-to-Pack system and a battery management system (BMS), the technology provides a range exceeding 400 km. Future iterations are projected to reach 500–600 km for battery electric vehicles (BEVs) and 300–400 km for hybrids.

The technology is designed for operation in cold climates. At –30deg Celsius, the battery delivers triple the discharge power of lithium iron phosphate (LFP) alternatives. It maintains 90 percent capacity retention at –40deg Celsius and continues to function at –50deg Celsius. Safety testing, including drilling and crushing, resulted in no smoke or fire.

The global sodium-ion battery market is forecast to grow from USD 1.39 billion in 2025 to USD 6.83 billion by 2034. To support adoption, CATL plans to establish over 3,000 Choco-Swap battery swap stations across 140 cities in China by the end of 2026, with a focus on northern regions.

The launch follows a decade of research. Since 2016, CATL has invested nearly 10 billion RMB (USD 1.45 billion) into sodium-ion technology, developing approximately 300,000 test cells. The project was supported by a dedicated team of 300 personnel to ensure scalability and performance.

Gao Huan, CTO of CATL's China E-car Business, said, "The arrival of sodium-ion technology marks the beginning of a dual-chemistry era. Changan's vision shows both its responsibility for energy security and its strategic foresight. Much as it embraced electric vehicles years ago, Changan is once again taking the lead with its sodium-ion roadmap. At CATL, we value the opportunity to work alongside such an industry leader and fully support its strategy, combining our expertise to bring safe, reliable and high-performance sodium-ion technology to market."

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Following its international unveiling at CES 2026, drivebuddyAI, a leading innovator in AI-powered Advanced Driver Assistance Systems (ADAS) and Driver Monitoring Systems (DMS), recently demonstrated its technology at the ARAI ADAS Test City. The company presented its range of vision-based Advanced Driver Assistance and Driver Monitoring Systems, focusing on their reliability in the varied and challenging conditions typical of Indian roads.

Live demonstrations were conducted using a heavy commercial vehicle to showcase the platform's versatility in meeting various compliance standards. A single, integrated hardware and software setup, utilising a fused network of cameras for 360-degree perception, executed multiple test scenarios simultaneously. These included a driver monitoring system that detects drowsiness, distraction and seatbelt usage in line with both Indian and European regulations. Further tests illustrated the vehicle's ability to warn of pedestrians moving into its path, identify potential collisions with cyclists in blind spots and issue forward collision warnings by combining radar and camera data.

Beyond merely fulfilling test requirements, the demonstrations highlighted practical applications that extend into everyday driving situations. This focus on real-world functionality is backed by extensive validation, with the company's systems having analysed nearly four billion kilometres of driving data. This has reportedly led to significant safety improvements, including a marked decrease in incidents caused by driver fatigue and a substantial reduction in overall fleet risks.

Currently validated for commercial vehicles against India's AIS-184 standard and Europe's stringent General Safety Regulation and Euro NCAP protocols for 2026, the technology is also adaptable for passenger cars. This scalability offers automotive manufacturers and their suppliers a pathway to not only meet but surpass upcoming global safety mandates. By refining its AI through extensive fleet operations over billions of kilometres before adapting it for original equipment manufacturer compliance, drivebuddyAI aims to deliver a mature, rigorously tested product that ensures an enhanced user experience.

Nisarg Pandya, CEO and Founder, drivebuddyAI, said, “ADAS Test City from ARAI is a great initiative, and we value participating in a format where we can showcase live demonstrations to a large audience together on the vehicle. This time, the turnout was significant and provided a strong opportunity to establish drivebuddyAI as one of the key players in the upcoming OEM compliance requirements. The engagement and response we received were phenomenal, reinforcing both the market need and the industry’s confidence in our solutions. The upcoming ADAS-compliant vehicles must have technology that works in Indian scenarios to achieve meaningful safety improvements and reduce fatalities.”

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