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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Epson, a global leader in SCARA robot manufacturing, has unveiled its next-generation industrial robotics portfolio at Automation Expo Mumbai 2026. The newly introduced lineup features the high-end CX-A Series 6-axis robots, the LS-C Series SCARA robots, the RC+ 8.0 programming software and the advanced SafeSense safety technology, all designed to address diverse manufacturing applications such as pick-and-place, precision assembly, parts transfer and material handling.

The new offerings significantly expand Epson’s existing industrial robotics family, which already includes the 6-axis C-Series and SCARA T-Series and LS-Series models with payloads ranging from 3 to 20 kilogrammes. With the addition of the CX-A and LS-C Series, manufacturers across various sectors can achieve heightened productivity, flexibility and operational efficiency. The CX-A Series is engineered for complex tasks with a payload capacity of up to seven kilogrammes and a reach of 900 millimetres, available in IP67, cleanroom and ESD variants, while the LS-C Series provides a compact SCARA platform with a 50-kilogramme payload, a 1,000-millimetre reach and cycle times as fast as 0.298 seconds.

Complementing the hardware, the RC+ 8.0 software offers an integrated environment for programming, simulation and system management, facilitating faster automation deployment with support for Visual Studio and C++ development. Additional efficiency features include enhanced diagnostics, OPC UA, GUI builder and safety functions, alongside co-creation tools like Library Builder and RC+ Extension. Meanwhile, the SafeSense technology promotes safer human-robot collaboration by incorporating Safety Limited Speed and Safety Limited Position functions, which can potentially reduce the need for extensive safety fencing and thereby increase operational flexibility.

With over four decades of industrial robotics expertise and more than 200,000 robotic arms deployed globally, Epson continues to drive operational excellence for businesses. Attendees at Automation Expo Mumbai 2026 have the opportunity to view live demonstrations of these solutions and consult with Epson specialists about transforming their manufacturing operations.

Siva Kumar, Sr General Manager – Sales and Marketing, Epson India, said, "India is rapidly emerging as a global manufacturing hub, and automation will play a pivotal role in shaping its future. With our new industrial robot lineup and RC+ 8.0 platform, Epson is delivering the speed, precision and intelligence manufacturers need to compete in an increasingly dynamic marketplace. We remain committed to enabling businesses to accelerate automation adoption and build smarter, more agile and globally competitive manufacturing operations."

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The Hyundai Motor India Foundation, the corporate social responsibility (CSR) arm of Hyundai Motor India, has launched Samarth UnnATi in association with the AssisTech Foundation in Gurugram.

The initiative provides grant support of INR 7.5 million to assist startups developing assistive technology solutions for persons with disabilities. It focuses on capacity building, mentorship, investor linkages and market access.

Gopalakrishnan C S, Trustee, Hyundai Motor India Foundation, said, “At Hyundai, we believe that accessibility and innovation are powerful enablers of inclusion and progress. Through ‘Samarth by Hyundai’, we are committed to creating opportunities that empower persons with disabilities to participate more independently and confidently in society. The Samarth UnnATi – AT start-up scaleup program is an important step towards strengthening Assistive Technology ecosystem by supporting innovators who are developing impactful solutions to address real-world accessibility challenges. Through our partnership with AssisTech Foundation, we aim to accelerate the adoption of assistive technologies and help build a more inclusive society.”

Prateek Madhav, CEO and Co-Founder, AssisTech Foundation (ATF), said, “By 2050, the need for assistive products in the global population is estimated to increase to 3.5 billion (UNICEF Global Report on Assistive Technology). To reach this breadth, innovation cannot be a standalone phenomenon. It must be nurtured, deployed at scale and reach the people who need it the most. Samarth UnnATi is the engine that drives this, bringing together these largely disparate efforts toward a more cohesive approach.”

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Cars24 Labs has announced a partnership with the Startup Policy Forum to collaborate on AI policy, industry engagement and AI adoption in India.

The partnership involves Cars24 Labs contributing to Startup Policy Forum initiatives through policy discussions, founder engagements, industry dialogues and global immersion programmes, sharing practical learnings from deploying AI across Cars24 operations.

Vikram Chopra, Builder, Cars24, said, "At Cars24, we've always believed that the best way to understand AI is to build with it. Cars24 Labs was created with that mindset, and we've learned a great deal from putting AI into real products used by millions. Partnering with Startup Policy Forum gives us an opportunity to share those learnings, learn from others, and contribute to the conversations that will shape how India builds and adopts AI in the years ahead."

Shweta Rajpal Kohli, President & CEO, Startup Policy Forum, said, "Cars24 has been a valued member of SPF, and we've worked closely with them on several policy initiatives that matter to India's new economy. Being among the most AI-forward startups in our country, Cars24 is doing some incredible work on AI adoption and innovation. We're excited to partner with Cars24 Labs. It's deeply aligned with our mission of bridging the gap between India and global AI ecosystems, enabling cross-border collaborations, and encouraging AI adoption by Indian companies."

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N.A.N. GreenMet, the critical minerals and advanced manufacturing platform founded by Navin Agarwal (Vice Chairman, Vedanta), has launched N.A.N. MagneTech to establish a Neodymium-Iron-Boron (NdFeB) magnet manufacturing facility at the Naidupeta Industrial Park in Andhra Pradesh.

The company has earmarked an investment of INR 12.5 billion in Phase I to build an initial capacity of 1,200 tonnes per annum, with a long-term target of 10,000 tonnes per annum.

It expects commercial production to begin in Q1 2028, generating annual revenues of INR 12 to INR 15 billion. The facility will integrate oxide processing, metal and alloy production, sintered magnet manufacturing and closed-loop recycling.

The project has secured feedstock supply arrangements with an Australian rare earth producer and executed off-take agreements with domestic automotive original equipment manufacturers. Technical development is led by Dr. John Ormerod, Dr. Masato Sagawa and Dr. Gaurav Shukla.

Navin Agarwal, Founder & Chairman, N.A.N. GreenMet, said, “The industries shaping the future will be defined by those who control advanced materials and manufacturing technologies. At N.A.N. GreenMet, we are building a globally competitive industrial enterprise that strengthens India’s manufacturing capabilities in strategically important sectors. N.A.N. MagneTech is an important milestone in that endeavour, bringing world-class technology to establish a domestic rare earth magnet ecosystem that supports the country’s long-term industrial growth”.

Dr. John Ormerod, Chairman of the Technology Board, N.A.N. MagneTech, added, "We are bringing the most advanced Japanese process technology to India, covering the complete oxide-to-magnet ecosystem. Backed by a secured feedstock strategy and closed-loop recycling, this platform is engineered to deliver consistent, world-class quality."

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