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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Zenobe, a fleet electrification and battery storage specialist, has acquired California-based Revolv to expand its electric truck operations in the United States. The transaction marks Zenobe's entry into the North American commercial fleet and truck segment.

The acquisition adds to Zenobe's established portfolio in student transportation and public transit across the U.S. and Canada.

Key additions to Zenobe’s network include:

• Operational Sites: 13 customer sites located in California.
• Fleet Size: More than 100 electric trucks integrated into the service network.
• Project Pipeline: Additional commercial projects currently under development.

Zenobe intends to integrate the Revolv team to maintain continuity for existing customers and leverage regional expertise. The combined platform provides end-to-end solutions, including vehicle provision, charging infrastructure, financing and battery lifecycle management.

The expansion follows a period of growth in the U.S. Zero Emission Truck (ZET) market, where over 59,000 vehicles have been deployed nationwide. Zenobe’s strategy focuses on a battery-as-a-service (BaaS) model, which involves performance guarantees and the management of second-life battery applications to reduce risks for fleet operators.

The acquisition is supported by Zenobe’s major investors, KKR and Infracapital, as part of a broader effort to scale electrification in hard-to-decarbonise sectors.

Andreas Lips, President of EV North America, Zenobe, said, “Revolv's end-to-end fleet electrification model is highly complementary to Zenobe's global experience and our growth plans in North America. As commercial fleet electrification enters its next phase, operators are increasingly seeking partners who can deliver vehicles, infrastructure, financing and long-term battery performance under one roof. This acquisition strengthens our ability to provide flexible, end-to-end solutions at scale across North America.”

Steven Meersman, Founder Director, Zenobe, said, “This is a strong opportunity to accelerate electrification at scale, by pairing Revolv's fleet electrification platform with our deep experience and unique financing models. We're grateful to Revolv CEO Scott Davidson and the team at GDEV Management for backing Revolv early on. Now we are taking it to the next stage.”

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51WORLD has been named as Nvidia’s global Level 4 simulation partner. The companies announced an integration between Nvidia Omniverse NuRec and 51WORLD’s SimOne platform during the Nvidia GTC Conference on 16 March 2026.

The collaboration utilises neural rendering technology to convert static, real-world collected scenario data into interactive simulation environments. This process is intended to address limitations in autonomous driving development workflows by making recorded data reactive.

The platform is designed to support the training of reasoning-based autonomous systems, including – world models, vision-language-action (VLA) models and physical AI development tools.

By transforming real-world data into interactive simulations, the integration increases the volume and variety of edge cases available for developers working on Level 4 autonomous systems.

At present, 51WORLD holds a 53.5 percent share of the L3+ simulation market in China. The partnership with Nvidia is intended to extend the company's reach into international autonomous driving programmes and provide development tooling for global automotive partners.

The announcement coincided with several related partnerships involving Nvidia’s DRIVE Hyperion, Omniverse and Alpamayo technologies, focused on the advancement of autonomous vehicle platforms.

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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.”

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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."

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