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.
Aimtron Electronics Secures Initial European Order For Box-Build Solutions
- By MT Bureau
- February 11, 2026
Vadodara-based Electronics System Design and Manufacturing (ESDM) company Aimtron Electronics has secured its first order from a European Original Equipment Manufacturer (OEM). The contract, valued at approximately INR 38 million, involves providing box-build solutions for a client headquartered in Europe with manufacturing operations in Spain.
The order marks the company's entry into the European market, serving automotive and industrial sectors. Aimtron anticipates that revenues from this engagement could scale to four times the current size during the 2027 financial year.
The development follows the announcement of the India–Europe Free Trade Agreement (FTA), which aims to improve the competitiveness of Indian manufacturers. Aimtron intends to leverage its manufacturing operations in India and the United States to diversify supply chains for European customers.
This European foray follows the company’s recent acquisition of a US-based electronics system design and manufacturing (ESDM) firm to strengthen its engineering capabilities for global OEMs.
Sneh Shah, Whole-time Director, Aimtron Electronics, said, “Meeting European automotive requirements demands a high level of process discipline, quality governance, and execution consistency. Aimtron has invested steadily in building these capabilities across box-build, traceability, and program management. This engagement reflects that readiness and provides a clear pathway to scale programs across European end-markets.”
MAHLE Intros HeatX Range+ For More Winter Range For EVs
- By MT Bureau
- February 10, 2026
MAHLE has introduced an advanced heat recovery system that enhances the efficiency of cabin heating in electric vehicles, directly addressing the challenge of reduced range in cold weather. This innovation, the MAHLE HeatX Range+, reclaims thermal energy from the vehicle's exhaust air. As interior air is expelled, it passes through the air conditioning evaporator, where its heat is transferred to the refrigerant. This captured energy is then used to preheat incoming fresh air before it enters the cabin.
This process reduces the total energy demand for the vehicle's climate control system by approximately 20 percent compared to conventional methods. In practical testing with a mid-size electric vehicle at an outside temperature of -7°C and a cabin target of 20°C, the system extended the driving range by nearly 10 kilometres. Beyond range extension, the continuous influx of fresh air maintains high interior air quality and minimises window fogging.
Engineered for seamless integration, the system has no adverse effect on airflow or acoustics. Its modular design allows manufacturers to incorporate it into existing vehicle architectures easily and cost-effectively. MAHLE developed the technology drawing on its extensive expertise in thermal management, and the current configuration for refrigerant R1234yf can be readily adapted for use with future alternative refrigerants.
Martin Wellhoeffer, Member of the MAHLE Group Management Board, responsible for the business unit Thermal and Fluid Systems, said, "Our HeatX Range+ heat recovery concept maximises the everyday practicality of electric vehicles in winter and makes a decisive contribution to further increasing the attractiveness of electric mobility.”
Dr Uli Christian Blessing, Vice President – R&D Thermal and Fluid Systems, MAHLE, said, "As early as the 1990s, MAHLE introduced the '’Economizer'’, the first cabin heat recovery system concept for passenger and commercial vehicles, thereby pioneering today’s trend towards efficient cabin climate control.”
Tata Technologies Adapts WATTSync Platform For India’s Battery Aadhaar
- By MT Bureau
- February 10, 2026
Tata Technologies has announced that its battery intelligence platform, WATTSync, is now equipped to meet India’s upcoming Battery Aadhaar requirements. The digital identity and traceability framework aligns with the EU Battery Regulation (EU BR 2023/1542).
The platform supports India’s mandated 21-character Battery Pack Aadhaar Number (BPAN), which allows manufacturers to manage identifiers across production, operations and recycling workflows.
WATTSync utilises a QR-code-enabled identity engine to provide access to both static and dynamic battery data. The system manages manufacturer identifiers, material composition, chemistry and battery carbon footprint (BCF).
To meet mandates for dynamic data, the platform integrates with Battery Management Systems (BMS) to track – State of Health (SoH), charge-discharge cycles, thermal events and operational parameters.
The architecture is cloud-ready and supports API-based data exchange with government-authorised central servers, ensuring traceability across the supply chain.
The platform includes Role-Based Access Control (RBAC) to provide structured data views for suppliers, operators, and regulators. Additionally, AI-driven analytics are used for predictive maintenance, including thermal anomaly detection and Remaining Useful Life (RUL) estimation.
For manufacturers under the ACC-PLI scheme, WATTSync provides provenance documentation to verify cell origin. The platform also tracks recovered materials and carbon footprints to support circular economy objectives and recycling chain mandates in both India and the EU.
Pony.ai And Toyota Commence Mass Production Of bZ4X Robotaxi
- By MT Bureau
- February 10, 2026
Chinese technology company Pony.ai has announced that the first mass-produced bZ4X Robotaxi, developed in partnership with Toyota, has rolled off the production line. This marks the transition to scaled production and commercial deployment for the collaboration.
The partners plan to produce over 1,000 bZ4X units in 2026. These vehicles will be introduced into commercial services across Tier 1 cities in China, supporting Pony.ai's objective to expand its fleet to over 3,000 vehicles by the end of the year.
The bZ4X Robotaxi is equipped with Pony.ai’s seventh-generation (Gen-7) autonomous driving system. Key features of the hardware include:
- Automotive-Grade Components: 100 percent of the core components meet automotive standards.
- Cost Efficiency: The bill of materials (BOM) cost for the autonomous driving kit has been reduced by 70 percent compared to the previous generation.
- User Features: The system includes Bluetooth unlocking, in-cabin voice interaction, and climate control, with software tuning to reduce motion sickness through refined acceleration and braking.
The vehicle was developed by Pony.ai, Toyota Motor China and GAC Toyota, with production managed by GAC Toyota. The assembly process integrates the Toyota Production System (TPS) and adheres to Toyota’s Quality, Durability and Reliability (QDR) principles. Dedicated systems for quality and safety management have been established to support large-scale operations.
The collaboration between Pony.ai and Toyota began in 2019. Since then, the companies have established a joint venture focused on Robotaxi design and manufacturing. This milestone follows the launch of other Gen-7 models that entered commercial service in November last year.
The partners stated that this production milestone demonstrates a pathway for autonomous technology to move from limited validation to mass production.
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