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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Uber, one of the leading rides-hailing platforms, has announced a strategic investment in the Open Network for Digital Commerce (ONDC). The transaction marks one of the earliest equity investments by a global technology firm into the network.

The capital infusion builds upon Uber’s existing operational integrations with ONDC and to expand user access to multimodal transportation architectures and optimise decentralised logistics frameworks for independent earners and commercial enterprises across the open network.

The deepening collaboration focuses heavily on bridging mass public transit networks with last-mile ride-sharing services under a unified application experience.

The move will see integrated metro rail ticketing features, which are currently live across five Indian cities through the Uber application. Consumers have booked more than 10 million metro rides utilising the Uber-ONDC interoperable infrastructure, indicating strong market demand for consolidated public transit options.

Beyond passenger transit, Uber plans to co-develop enhanced supply chain and logistics features alongside ONDC to improve discovery and delivery efficiencies for businesses operating on the digital platform.

Prabhjeet Singh, President of Uber India and South Asia, said, "India has been at the forefront of building Digital Public Infrastructure that is inclusive, interoperable, and transformative at scale. Our ongoing partnership with ONDC and now this investment puts us at the heart of that innovation journey. By investing in this network, we're helping more people move, more businesses grow, and more earners thrive harnessing the power of the ONDC network.”

Adil Zainulbhai, Independent Director, ONDC, added, "ONDC is a key pillar of India’s efforts to democratise digital commerce and create a level playing field for businesses of all sizes. Uber’s investment is a strong endorsement of India’s digital public infrastructure and its potential to drive innovation, efficiency and inclusive growth."

Image only for representational purposes.

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Chinese automaker BYD has secured the top position in the global automotive innovation ranking within the Automotive INNOVATIONS Report 2026, published by the Germany-based Center of Automotive Management (CAM).

This milestone marks the first time a Chinese automotive manufacturer has claimed the first-place ranking since the annual CAM study was established in 2005.

BYD achieved the leading score with 157 points, displacing the previous year’s top-ranked manufacturer, Volkswagen Group, which moved to second place with 143 points. Mercedes-Benz secured the third position in the evaluation, registering 134 points.

The index results highlight BYD’s expanding research and development capabilities, alongside the increasing technological competitiveness of Chinese original equipment manufacturers (OEMs) within the global automotive landscape.

The Automotive INNOVATIONS report is a long-running industry study launched by CAM in 2005 to track, evaluate and categorise technological innovations, future-ready propulsion systems and software developments among international automotive groups. The shift in leadership for 2026 reflects broader structural transitions and changing product-driven engineering cycles inside the global market.

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Dhoot Transmission, an automotive components manufacturer backed by Bain Capital, has entered into a strategic partnership with Israel-based technology company RideVision. The collaboration marks Dhoot Transmission’s entry into intelligent mobility and advanced driver assistance systems (ADAS).

The partnership is aimed at expanding Dhoot's existing automotive electronics portfolio and introducing localised safety technologies specifically engineered for Indian road conditions and regulatory environments.

The alliance will prioritise the development, technology integration and deployment of intelligent safety solutions across India’s shifting mobility ecosystem. Key focus areas of the partnership include:

• Tailored Engineering: Adjusting global ADAS software and hardware capabilities to navigate unique local driving behaviours, traffic densities and road infrastructure in India.
• Portfolio Expansion: Complemented by Dhoot’s industrial footprint, the collaboration moves the company further into advanced technology and electronic solutions.
• Democratising Safety: Localising the manufacturing stack to reduce production costs, making life-saving driver assistance accessible across broader vehicle segments.

In tandem with this electronic product expansion strategy, Dhoot Transmission announced that its subsidiary, Dhoot Automotive Systems, has executed a business transfer agreement with Bengaluru-based firm Multilink. The acquisition is intended to strengthen Dhoot’s baseline engineering capabilities and position the company for future growth in advanced tech sectors.

Naveen Kumar, CEO – India (Wiring Harness and Electronics), Dhoot Transmission, noted, “We believe this is the right time to bring intelligent safety technologies to India. Our partnership with RideVision combines global ADAS expertise with our deep understanding of the Indian market to develop solutions specifically engineered for Indian road and operating conditions. Together, we aim to make mobility in India safer, smarter, and future-ready.”

Uri Lavi, Founder and CEO, RideVision, added, “India stands at the precipice of a fascinating new era of smart mobility – one that will have a profound, measurable impact on saving lives every single day. Through this collaboration with our partner Dhoot Transmission, we are bringing advanced ADAS capabilities directly to the heart of the Indian market. By localizing this cutting-edge technology, we aim to democratise life-saving safety solutions for all.”

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Pre-owned car marketplace Cars24 has announced the launch of AI Labs, a dedicated initiative designed to develop artificial intelligence-native products and support early-stage entrepreneurs.

As part of the program, the company has committed a USD 20 million investment fund targeted at startups and development teams building transformative AI technologies.

The move marks an expansion of Cars24’s internal technology strategy, where machine learning and artificial intelligence models have already been integrated into core business operations to manage decision-making workflows and customer experience interfaces. Through AI Labs, the company will extend its technical resources externally to independent software engineers and startup founders.

To establish the infrastructure for the program, Cars24 has partnered with technology providers including OpenAI, Amazon Web Services (AWS) and ElevenLabs. This ecosystem will provide participating developers with cloud infrastructure, technical expertise, distribution networks and advanced language and voice synthesis models to accelerate product deployment.

The operational focus of AI Labs is divided into three primary activities:

• Build: Developing proprietary AI-native applications and contributing to global open-source software innovation.
• Partner: Collaborating with established artificial intelligence firms to encourage industry experimentation and technology adoption.
• Invest: Supplying seed capital and strategic support to early-stage businesses building software categories.

Beyond direct equity investments, the initiative will fund community engagement programs, including regional hackathons, builder incubation programs and collaborative open-source projects designed to stimulate developer experimentation.

Vikram Chopra, Founder and CEO, Cars24, said, “Every major technology shift creates a handful of companies that go on to define the future. We believe AI is the biggest shift of our generation, and the opportunity ahead is far larger than anything we've seen before. Over the last few years, we've seen AI fundamentally change how we operate, build products, and serve customers AI Labs is our way of giving back to the ecosystem that is shaping this future. We want to back founders early, help them move faster and support the people building things that seem impossible today but inevitable tomorrow.”

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