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.

Innovation and sustainability in design took centerstage at the 19th Styling & Design Conclave 2025 organised by the Society of Indian Automobile Manufacturers (SIAM). The event saw participation from designers and professionals from organisation such as Hero MotoCorp, Maruti Suzuki India, Honda Motorcycle & Scooter India, Stratasys and Autodesk among others.

G Sathiyaseelan, Chairman, SIAM Styling and Design Group and Vice-President, Ashok Leyland, shared his views on empathetic, inspirational and innovative approach towards technology and design,

Anuj Prasad, CEO and Founder, Desmania, expressed confidence in the bright future for automotive designers.

The event saw speakers acknowledging that automotive styling has become an old word, while design and sustainability are the modern buzzwords that indicate the direction in which the automotive sector must head.

“The level of design happening in India holds tremendous potential. We are at the threshold of a new era in design and innovation. Today, international organisations are looking to India for designs that cater to both local and global markets. Automotive design will help build the nation in a responsible manner,” said Prasad.

Prashant Banerjee, Executive Director, SIAM stated that “Indian automotive designs today are as good as Italian designs.”

Samarth Gupta, Senior Technical Specialist & Mobility Lead APAC, Autodesk, said, “Everyone wants to own a vehicle because it is an expression of independence. The urban population landscape is changing due to climate change. New developments in geopolitics and the evolution of consumers’ trends and preferences are impacting the mobility landscape. We will need to evolve our auto design thinking amidst disruptions.”

Teofilo Plaza Garcia, Industrial Studio Head, Hero MotoCorp, said “Motorsports-based designs can be used for road-based vehicles, as indicated through Hero XPulse 210. These vehicles will no longer be as expensive as before.”

Rahul Pandita, Regional Head, Stratasys, stated that 3D block printing is a useful technique that has helped companies like McLaren bring racing designs to life quickly. “As design processes such as 3D block printing decrease the time taken, companies can quickly decipher whether a design is feasible or not,” said Pandita.

Dinesh Raman, Director, Transportation Design, KISKA Shanghai, opined that “As the years go by, greater use of AI will be made for design, thereby freeing up time for creative pursuits by automotive designers.”

VS Deka, Group Manager, Royal Enfield, said, “AI innovation is coming into our lives and we need to adopt the evolving technology. AI can be customised through training and then be scaled up as per requirements.”

Ferdinand Klauser, Global Partner & MD, Asia, KISKA Shanghai said, “India has a lot of potential in bringing about the transformation in mobility designing landscape.”

He also mentioned that though the future is unpredictable, it is possible to plan for it by understanding that consumer needs are transforming faster than the market.

Professor Kaustuv Sengupta of NIFT Chennai, stated, “Colour represents around 20 percent of the design language. Every 300 miles in our country, you see a new colour context. Human beings see a small spectrum of colours. Colours affect us psychologically. We see what we want to see.”

Rajesh Gogu, Vice-President (Design), Maruti Suzuki India, revealed that the company decided to create a completely new design for the fourth generation of the Dzire. The design became a success despite a 55 percent market share for SUVs.

“The trends on the road are changing, as demand for sedans have reduced while that of SUVs have grown. Designing can reinvent declining segments or products to make them popular again. Innovation is not just about technology, it is also about shape, form, aerodynamics, performance and more. We can design our vehicles that can reduce the carbon footprint offering better fuel efficiency and value to customers,” averred Gogu.

While describing the role of AI in automotive designing, Harikrishnan AK, Delivery Manager, TCS Design, said, “AI image generators can be used for inspiration, exploration and for happy accidents but there are challenges of confidentiality and originality. We need to harness the full potential of AI by customisation and fine-tuning.”

Speaking about designing in the commercial vehicle segment, Pravin Gaikwad, Head of CV Design, Tata Motors, said, “We have adopted multi-powertrain strategy. It is possible for the form to get you the trust of the customer. Form is actually helping us to define many ideas. We are leveraging tech intelligence like telematics to design something very unique.”

He shared an insight on how Tata Motors was using space intelligence as a new design direction for making Tata Prima trucks and a new space-saving concept called Tata YU.

The SIAM Styling and Design Conclave also presented automotive design students of MIT (Maharashtra Institute of Technology), ADYPU (Ajeenkya DY Patil University) and NID (National Institute of Design) an opportunity to present their design prototypes. Vedant Barve, a student at MIT, won the first prize for an electric cruiser scooter concept.

“When we began, India had only two design schools. Today, there are over 1,500 design schools producing a strong talent pool for automotive design. We need to be transformative and move toward defining automotive design that is human-centric and sustainable,” added Prasad of Desmania.

“To make India into a global design hub, change that helps India use aspects of its culture while competing at a global level is needed in the academic curriculum,” concluded Sumer Singh, Associate Professor, IIT Delhi.

German tier 1 supplier Continental has announced its latest solution for the automotive industry, the Ac2ated Sound display, a first-of-its-kind in the industry that uses a display surface to bring high-quality audio output.

The technology will not only enable space saving but also could enable significant weight reduction and allow for more innovative solutions to be integrated.

The Ac2ated system uses actuators installed behind the display surface and induce audible vibrations in the glass. The company stated that humans have an intuitive ability to identify the origin of a detected sound in a three-dimensional space, which is referred to ‘sound localisation’. In simple terms, humans, when hearing any sound, have a natural tendency to try and identify the source of the sound. In the automotive industry, the Ac2ated Sound display can create a more immersive experience as the display itself could be used like a sound box.

Given the smaller footprint of the actuators, the solution can be implemented in various flat components of the vehicle interiors.

Continental claims that Ac2ated Sound system requires up to 90 percent less space and can offer up to 40 kilograms of weight saving compared to conventional speaker systems.

Pavel Prouza, Head of User Experience (UX) Business Area, Continental, said, “By integrating actuators into the display, we have succeeded in using the entire display surface as a sound chamber to resonate sound within the vehicle – all in exceptional quality. Not only does this save valuable space in the vehicle interior, but it also reduces weight compared with traditional speakers. The system leverages our full expertise as a system integrator for the benefit of our customers – combining visual and audio output in a single package without compromising on quality.”

TVS Supply Chain Solutions, a global supply chain solutions provider, has announced changes to its leadership structure with the appointment of R Vaidhyanathan as its new Global Chief Financial Officer (CFO) effective 1 April 2025. He succeeds Raviprakash Bhagavathula, who will transition to the new role of Head of Strategic Initiatives and move to Singapore.

At present, Vaidhyanathan serves as Deputy Global CFO and has held various positions in Finance within the organisation. He had joined the company in January 2019 and has worked across various leadership financial roles the position, and is credited to play a key role in significant enhancements to the productivity of the finance function.

Ravi Viswanathan, Managing Director, TVS Supply Chain Solutions, said, “We are delighted to appoint R Vaidhyanathan as our new Global CFO. His strong track record in driving financial performance, optimising cash flow, and fostering a culture of operational excellence has been instrumental in our growth journey. I am confident that his deep understanding of our business and his strategic vision will help us continue to innovate and scale as we move into the next phase of growth journey. We also express our sincere gratitude to Raviprakash Bhagavathula for his invaluable contributions since 2018 as CFO, especially for leading TVS SCS to a successful public listing. We look forward to his leadership in driving our strategic initiatives.”

Both Vaidhyanathan and Bhagavathula will report to Ravi Viswanathan, MD, TVS Supply Chain Solutions.  

British premium luxury car brand Aston Martin has joined hands with Curv Racing Simulators to introduce limited edition AMR-CO1-R simulator with prices starting GBP 58,750 (INR 5.98 million) plus tax. The deliveries are set to begin in April 2025.

Limited to just 50 units, the AMR-CO1-R builds up on the AMR-CO1 and now features precision ergonomics, cutting-edge hardware and even more immersive racing experience.

The partnership sees Aston Martin join forces with three-time Le Mans winner and simulator specialist Darren Turner, who currently leads Curv Racing Simulators. The AMR-C01-R continues to use the all-carbon fibre monocoque and signature Aston Martin Racing grille. The seating position has been revised and inspired by Aston Martin Valkyrie. The new model can now be further adjusted for more comfort and accessibility, especially for taller drivers.

The simulator uses a 49-inch G95C monitor with a 1000R curvature with 240Hz refresh rate (previously 120Hz) and 1ms response time (previously 4ms), which delivers seamless and razor-sharp visuals. Furthermore, the addition of HDR10+ Gaming brings to life more vivid colours and deeper contrast. Thanks to the Nvidia GeForce RTX 5090 graphics card, Intel 14th-generation processor, 32GB DDR5 memory (up from 16GB), and 2TB M.2 SSD storage enable real-immersive gaming performance and ample space for an extensive racing library.

Marek Reichman, Chief Creative Officer, Aston Martin, said, “Curv’s latest simulator is an exciting continuation of the AMR-C01, which was launched in 2020. With improved performance, and a seating position inspired by Valkyrie, this is as close to driving an Aston Martin on-track that a racer will experience. The design itself, like any Aston Martin, will fit into a residence as a sculptural work of art, not just a traditional racing simulator.”

Darren Turner, Founder, Curv Racing Simulators, added, “The AMR-C01 was a game-changer when it launched in 2020, and the AMR-C01-R takes it to the next level. We’ve refined the ergonomics and performance, to make it even more immersive, intuitive, and future-proof. For those who demand the very best, this is the ultimate racing simulator."