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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Bengaluru-headquartered AI fleet safety and performance solutions company Netradyne has announced the acquisition of Moove Connected Mobility, a European fleet intelligence and mobility company with presence across European markets.

The acquisition is part of Netradyne’s expansion and its strategy for the European region. By combining Netradyne’s platform with Moove’s presence, customer relationships and experience, the company aims to serve customers across the continent.

Moove will join Netradyne Europe, serving as a hub for regional sales, customer engagement, partnerships and market development. This structure allows Netradyne to increase growth in Europe while remaining close to customers, regulators, and partners.

Avneesh Agrawal, CEO and Co‑Founder, Netradyne, said, “Europe is a critical pillar of our global strategy. This acquisition reflects a clear commitment to building long‑term presence, leadership, and trust in the region. By bringing together Moove’s local expertise and relationships with Netradyne’s AI platform, we are uniquely positioned to support European fleets at scale while staying deeply anchored in the region.”

Moove’s leadership team has experience in the European regulatory and operational landscape for mobility. Jeroen Bruinooge, Former CEO of Moove Connected Mobility, will become SVP & GM, Europe at Netradyne. He will lead the European strategy, partnerships and customer success.

The teams will focus on solutions to help fleet operators with safety outcomes, driver performance, and operational insights. The acquisition also increases Netradyne’s ability to support customers seeking a platform across North America, Europe, and Asia. This move is part of Netradyne’s mission to build an AI company with investment in the markets it serves.

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Italian technology company Brembo has announced that its intelligent braking platform, Sensify, has entered commercial production for a major global vehicle manufacturer. The system is being fitted as standard across the entirety of the vehicles in the initial programme, representing the platform's first full industrial deployment.

Sensify is designed as a fluid-free architecture that replaces centralised hydraulic circuits with distributed intelligence at the wheel level. This design allows for the precision control, wherein the system enables continuous and accurate modulation of braking forces to maintain vehicle stability in variable driving conditions. The platform integrates with software-defined vehicle architectures, allowing manufacturers to deploy advanced functions across different vehicle segments. It is engineered to be adaptable with the technology supporting a range of applications from driver assistance systems to fully autonomous vehicles.

Following this production milestone, Brembo has secured additional contracts with new customers for the Sensify platform. The company expects to equip hundreds of thousands of vehicles annually, moving toward large-scale deployment of by-wire braking systems.

Daniele Schillaci, CEO, Brembo, said, “Sensify translates our vision of an intelligent, integrated braking platform into industrial reality. Designed to orchestrate the entire corner ecosystem, it supports safer mobility, while paving the way for the next generation of software-defined vehicles, reflecting our long-term purpose of shaping a Zero Accident Future”.

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Bengaluru-based technology company Tsuyo Manufacturing has been granted two patents for electric vehicle motor designs, increasing its portfolio to 29 innovations.

The company claims it has supplied 300,000 powertrains to 25 manufacturers across the commercial vehicle, agriculture and industrial sectors.

The first patent covers a bridge design for synchronous reluctance motors. This architecture increases torque density and efficiency whilst reducing energy losses and the requirement for rare-earth materials. The second patent focuses on a five-phase permanent magnet motor using a dual inverter system. This technology allows the motor to switch between modes for startup and torque demands and maintains operation if a phase failure occurs.

These technologies were developed through research and collaboration with the Visvesvaraya National Institute of Technology, Nagpur. The company recently received approval from the Government of Karnataka for a manufacturing expansion to increase powertrain production.

Vijay Kumar, Founder and CEO, Tsuyo Manufacturing, said, "These patents mark a significant milestone and recognition in our mission to develop and promote Design-In-India technology for both domestic and global EV markets. At Tsuyo, we are not merely creating components; we are engineering a comprehensive design approach, crafting fundamental technology to drive sustainable and impactful innovation. Our goal is to offer a resilient powertrain system that addresses real-world performance challenges in electric mobility. Our commitment to deep-tech innovation, supported by a strong in-house R&D team and robust academic collaborations, enables us to challenge conventional construction and topology in hardware. This approach allows us to create niche, modular designs that are manufacturable and scalable, delivering solutions that enhance efficiency, reliability, and cost-effectiveness for OEMs. We take pride in being India's fastest research and engineering startup, consistently advancing our research from TRL1 to TRL9 levels. As India moves towards electrification, we are proud to contribute to the 'Design in India, for the world' vision while expanding our IP portfolio with numerous innovations in the pipeline."

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Skoda Auto Volkswagen India (SAVWIPL) has opened a new 33,000 sqft wing at its Technology Centre Pune (TCP) in Baner. The facility is designed to house 250 engineers, bringing the total engineering workforce to more than 450 across its Pune sites.

The expansion aims to increase capacity for vehicle development, platform engineering and software solutions. Staff at the Baner site will also focus on sustainable mobility and connected technologies. This centre acts as a hub for both domestic and international projects within the Volkswagen Group.

The Technology Centre Pune has previously managed the development of models for the Indian market, including the Volkswagen Taigun, the Skoda Kushaq and the Skoda Kylaq sub-4-meter SUV. The new wing is intended to improve localisation and speed up the adaptation of global platforms for local requirements.

Piyush Arora, Managing Director & CEO, Skoda Auto Volkswagen India, said, “The expansion of our R&D footprint in Pune marks another important milestone in our India journey. With the new Baner wing, we are creating additional capacity in a dynamic urban location while building on the strong foundation of our Technology Centre Pune in Chakan. As part of its long-term roadmap, TCP is set to expand its competencies in digitalization, automation, and advanced safety technologies. This combined engineering ecosystem allows us to deliver global-quality solutions with higher speed, greater localisation, and a sharper understanding of customer requirements in India and the world. It further underlines India’s position as a strategic development and competency hub for the Volkswagen Group.”

The company started the Technology Centre Pune in 2019 at its Chakan plant. This latest expansion in Baner is part of a roadmap to increase competencies in automation and safety technologies while maintaining the Group's standards for the subcontinent and export markets.

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