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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German technology company Elektrobit is set to showcase innovations focused on creating the ‘right-sized’ software-defined vehicle (SDV) at CES 2026 in Las Vegas. The company will address the industry challenge of balancing innovation, scalability and affordability as vehicle complexity and development costs rise.

The demonstrations, located at the Las Vegas Convention Center, West Hall, will provide insights into strategies for reducing SDV development complexity and accelerating the process of bringing next-generation vehicles to market.

Elektrobit will feature several technologies designed to streamline SDV creation and performance:

• Linux for Safety Systems: The EB corbos Linux for Safety Applications will be demonstrated with a safety-certifiable cockpit by Telechips. This exhibit shows how open-source innovation and functional safety can be combined for real-time performance in Advanced Driver-Assistance Systems (ADAS).
• Automated Integration: A platform highlighting API-based extensions across Continuous Integration/Continuous Delivery/Continuous Testing (CI/CD/CT) workflows. It uses intelligent tooling, including AI-assisted automation, to automate configuration, scripting and test case creation for faster, higher-quality software delivery.
• SDV Cockpit Solutions: Solutions range from virtual low-code design tools to a modular, safety-certified automotive Operating System (OS) and ready-to-integrate hardware platforms, all designed to accelerate the creation of vehicle experiences.
• Smart EV Platform: A modular software and hardware platform co-developed with Foxconn aims to bring SDVs to market faster and more cost-effectively. It delivers the core vehicle control units and software platform without supplier lock-in.

Maria Anhalt, CEO of Elektrobit, will participate in the CES 2026 conference program. She is scheduled to speak on the Smart Rides panel on 8 January 2026.

The panel, which includes participants from Magna International and TomTom, will cover how SDVs are transforming safety and personalisation, using data to protect drivers and deliver tailored driving experiences.

Key members of the Elektrobit executive team, including Chief Commercial Officer Christoph Herzig and Head of Strategic Business Development Dr. Siegfried Dirr, will also attend the event.

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Star Engineers India and ConnectM Technology Solutions have formed a joint venture, StarConnectM, to design, develop, manufacture and scale intelligent connected vehicle products for Automotive OEMs. The new entity aims to bridge the gap between software innovation and large-scale automotive production.

The partnership will combine Star Engineers’ manufacturing excellence, process reliability and quality assurance with ConnectM’s Smart Vehicle Electronics and Intelligent Mobility Solutions.  

StarConnectM’s focus includes connected vehicle architecture, software-defined vehicle platforms and next-generation mobility electronics.

The joint venture offers an end-to-end capability for OEMs from concept to production, integrating IoT intelligence, embedded electronics & software and scalable manufacturing.

Divya Ramraika, Managing Director, Star Engineers, said, “StarConnectM marks a milestone in our journey toward intelligent mobility. With ConnectM’s technology and Star’s manufacturing strength, we are creating scalable, reliable and connected solutions that redefine the end-user experience.”

Girish Subramanya, Managing Director, ConnectM, said, “This joint venture eliminates the traditional gap between innovation and manufacturing. Automotive OEMs today need partners who can deliver technology architectures for connected, software-defined vehicles and also scale them seamlessly into production.  StarConnectM stands exactly at that intersection, creating an ecosystem where technology and manufacturing co-exist as one integrated value chain.”

The JV will initially focus on the Indian market, with a roadmap for select global market expansion.

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Kinetic Green Energy and Power Solutions and Exponent Energy have formed a strategic alliance to launch 15-minute rapid charging solution for electric three-wheelers (e-3W), covering both the L5 and L3 categories.

This solution targets e-rickshaws and e-cargo carts, aiming to improve operational efficiency for last-mile mobility operators.

The partnership will see integration of Exponent Energy’s proprietary full-stack platform — which includes battery technology, a charging network and intelligent software—enabled Kinetic Green vehicles to achieve a 15-minute full charge.

This rapid charging is expected to extend daily operating hours by up to 30 percent. As per the understanding, Kinetic Green’s popular L3 models, including the Safar Smart, Safar Shakti, and Super DX will now feature this rapid charging technology.

The L5N Safar Jumbo loader and the upcoming L5M passenger variant will also utilise the 15-minute charging to allow for faster turnaround times, translating to more trips and higher earnings for operators.

The joint solution is backed by an industry-leading 3,000-cycle warranty. The digital platform will also provide features such as real-time state of charge tracking and predictive maintenance alerts.

To support Kinetic Green customers, Exponent Energy’s existing network of over 160 charging stations across four cities will be made available to the e-3W fleet. The infrastructure is planned to expand rapidly into major metros and tier II, III cities over the next 12 months.

Dr. Sulajja Firodia Motwani, Founder and CEO, Kinetic Green, said, “This partnership marks a defining moment for India’s electric three-wheeler sector. By bringing the country’s first 15-minute full charge solution to e rickshaws and cargo carts – the backbone of India’s urban last mile mobility - we are empowering owner operators, small & large fleet operators to achieve unprecedented uptime and efficiency. Our customer-centric approach drove this exclusive strategic partnership for our L3 e3W category offer our customers the best cost of ownership. This partnership accelerates our mission to democratise green mobility, making sustainable transportation accessible and affordable for all while propelling the development of India's EV infrastructure.”

Arun Vinayak, CEO and Co-Founder of Exponent Energy, said, “At Exponent Energy, our mission is to make EVs the easiest choice – and that means solving real problems for real operators. This collaboration allows us to embed our rapid charging platform into the entire portfolio of e3Ws in India – spanning both L5 and L3 segment – delivering unparalleled speed, reliability and scalability to operators and creating a blueprint for the future of electric transport.”

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BorgWarner is significantly expanding its partnership with Great Wall Motor by securing two new electrified propulsion projects, building upon two previously announced dual inverter programmes. These new initiatives are scheduled to enter mass production in 2026. A cornerstone of this collaboration is BorgWarner's advanced dual inverter technology, which utilises a highly integrated design. This single unit can simultaneously control and drive two motors, offering superior packaging flexibility and easier installation for vehicle manufacturers.

The technology's sophistication is underscored by its use of a power module with double-sided cooling and the latest Viper power switches. This configuration can reduce thermal resistance by as much as 50 percent compared to conventional single-sided cooling, leading to a substantial increase in power density. Furthermore, the design allows different semiconductor dies to be packaged within identically sized modules, ensuring compliance with China's stringent CLTC efficiency standards. The system also incorporates adaptive battery voltage regulation, which broadens the motor's high-efficiency operating range to improve overall performance.

Emphasising flexibility, BorgWarner employs a platform-based design that adapts to various hybrid vehicle architectures. For the newly awarded projects, the HEV version of the dual inverter integrates a DC/DC converter and offers an optional voltage boost module. In contrast, the PHEV variant is designed without these components. This modular strategy provides manufacturers with critical adaptability, enabling faster product development cycles while simultaneously reducing both design and production costs.

Dr Stefan Demmerle, Vice President of BorgWarner Inc. and President and General Manager, PowerDrive Systems, said, “BorgWarner’s technical expertise in electrification and dual inverter products has earned Great Wall Motor’s continued confidence. The extension of this collaboration not only reflects recognition of our products and technologies but also underscores our strong commitment to supporting our customers’ new energy strategies. We will remain dedicated to accelerating their electrified vehicle portfolio.”

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