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-based electric vehicle and technology company Ultraviolette Automotive has unveiled its voice assistant, christened ‘Violette’, at the Consumer Electronics Show (CES) 2026. Developed in partnership with Soundhound AI, the system allows riders to interact with the F77 electric motorcycle using voice commands to manage vehicle functions and access data.

The technology was demonstrated through the wake phrase ‘Violette’, enabling users to switch riding modes, start navigation and retrieve information from the user manual, such as tyre pressure specifications and service instructions. The system also provides proactive alerts, ride statistics and pre-ride checks via voice interface.

To facilitate interaction without visual distraction, the voice assistant operates through an audio-integrated helmet. This setup serves as the primary interface between the rider and the motorcycle, allowing for the retrieval of information while maintaining focus on the road.

Narayan Subramaniam, CEO & Co-Founder, Ultraviolette Automotive, said, “At Ultraviolette, we believe AI is going to play a pivotal role in enhancing rider safety. As a technology-first company in the mobility space, our mission has always been to redefine the riding experience by fusing cutting-edge engineering with intelligent systems. The integration of Violette A.I. with Soundhound AI marks a significant step in advancing human–machine interaction. By enabling seamless voice-led control we are creating a riding experience that is intuitive, immersive, and future-ready, allowing riders to stay fully focused on what matters most- the road ahead”.

Niraj Rajmohan, CTO & Co-Founder, Ultraviolette, said, “At Ultraviolette, we have spent years developing technologies that make a meaningful impact in the mobility space, with a singular focus on bringing riders closer to their motorcycles in the most effortless way possible. Artificial Intelligence plays a crucial role in this transformation and in elevating the riding experience by anticipating rider needs, simplifying complex interactions, and delivering information instantly and safely. Violette A.I. represents a huge step in that direction, where every command, every query, and every interaction enhances rider confidence, safety, and comfort. By embedding intelligence directly into the riding experience, we are not only simplifying how riders engage with their motorcycles but also creating a new paradigm of connected mobility that is smarter, safer, and deeply human-centric”.

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GAC International and Grab have established a strategic partnership to deploy 20,000 electric vehicles (EVs) across six Southeast Asian countries within the next two years. The agreement, signed on 7 January 2025, marks a shift for GAC from product exports to the expansion of an integrated ecosystem comprising products, services and data.

The collaboration focuses on the introduction of three models under the AION brand: the AION Y, AION ES and AION V. These vehicles will be integrated into Grab's fleet to serve the taxi and ride-hailing segments. The AION V, which holds a Euro NCAP five-star safety rating, is positioned as the flagship SUV for the region, while the AION Y and ES models target the high-volume electric taxi market.

Beyond vehicle supply, the companies intend to integrate the Grab driver app directly into GAC’s intelligent cockpit systems. This technical link is designed to improve order acceptance efficiency and driver safety. The partnership also covers the development of aftersales support, data value mining and charging infrastructure to support the large-scale deployment of EVs in the region.

Xia Xianqing, President of GAC Group, attended the exchange, while the agreement was signed by Wang Shunsheng, Vice President of GAC International, and Dylan Choon, Regional Manager of Strategic Partnerships at Grab.

The move comes as the Southeast Asian EV market reported a 50 percent YoY sales increase in 2024. By leveraging Grab’s user base, GAC aims to build brand awareness and gather market insights for future model development. The initiative is intended to reduce regional transport emissions in line with carbon neutrality targets.

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Visteon Corporation has announced an expanded technology partnership with Mahindra & Mahindra that will see its next-generation SmartCore Pro cockpit domain controller deployed in Mahindra’s XUV7X0 SUV lineup.

Unveiled at CES 2026, the SmartCore Pro builds on the SmartCore system introduced in the Mahindra XUV700 in 2021. The new system integrates cockpit electronics, surround view camera technology and telematics on Mahindra’s Adrenox+ platform. It features a three-display configuration supporting vehicle information, infotainment, ADAS visualisation and connectivity, alongside an integrated 360-degree camera system.

Francis Kim, Vice-President of Global Sales & Commercial Excellence and General Manager for Rest of Asia, Visteon, said, “The automotive industry is shifting from discrete systems to fully integrated digital platforms, and India is among the fastest-moving markets in this transition. This partnership demonstrates how strategic OEM collaboration can accelerate time-to-market for complex technologies while laying the foundation for software-defined vehicles.”

Alongside the Mahindra announcement, Visteon also showcased the production specifications and OEM implementations of its High-Performance Compute solution built on the Snapdragon Cockpit Elite platform. The solution follows Visteon’s collaboration with Qualcomm Technologies announced at Auto Shanghai 2025 and is now being demonstrated with multiple global OEMs.

The High-Performance Compute platform supports centralised vehicle architectures and software-defined vehicle strategies. It enables on-device AI processing, multi-display support, multi-user experiences and personalised cockpit features. The system uses the Qualcomm Oryon CPU, Qualcomm Adreno GPU and enhanced NPU AI performance, while Visteon’s cognitoAI Concierge digital assistant operates using the company’s QWEN 7B model.

Uday Dodla, Vice-President, Product Management, Visteon, said, “This High-Performance Compute solution addresses a critical challenge our OEM partners face as they transition to centralized architectures. By consolidating multiple ECUs into a single, powerful platform, we're enabling automakers to reduce complexity and costs while delivering the sophisticated AI-driven experiences that consumers increasingly expect.”

Mark Granger, VP, Product Management at Qualcomm Technologies, said, “Visteon's demonstration of its High-Performance Compute solution on the Snapdragon Cockpit Elite platform highlights the momentum toward centralized, software-defined architectures that will power the next era of intelligent, connected vehicles.”

Visteon said the platform is designed to support a common architecture across vehicle segments, allowing OEMs to scale features while consolidating electronic control units and supporting long-term cost efficiencies.

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French tier 1 supplier Valeo and Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, have inked a strategic partnership for Advanced Rider Assistance Systems (ARAS).

The partnership will focus on enhancing rider safety by introducing advanced sensing, perception and intelligent technologies tailored specifically for two-wheelers across both entry-level and premium segments, including the OEM’s emerging electric mobility portfolio under VIDA. 

As part of the understanding, they will focus on ARAS by leveraging Valeo’s radar and smart camera tech equipped in Hero MotoCorp’s two-wheeler portfolio. This will not only enhance safety for two-wheeler users in India, but is also expected to drive awareness amongst customers globally.

The partners state that they have already achieved success in its proof-of-concept systems designed to protect both riders and pedestrians.

Marc Vrecko, CEO, Valeo’s Brain Division, said, “We are truly excited to partner with Hero MotoCorp to deliver solutions that will significantly enhance rider safety and create a more secure riding experience for millions of people. This collaboration is a key step in our strategy to bring advanced technology to the rapidly growing mobility market in India and globally.” 

Ram Kuppuswamy, COO, Plant Operations, Hero MotoCorp, said, “At Hero MotoCorp, we are redefining the future of mobility by bringing advanced technology to our products. Our partnership with Valeo marks a significant stride in making mobility smarter, safer and more sustainable with next-gen advanced rider assistance systems. Together, we aim to make two-wheeler safety accessible to everyone and set new standards for innovation and protection globally.” 

The ARAS architecture is developed as a digital co-pilot for riders, providing a 360deg safety envelope around the vehicle, it provides real-time sensing and intelligent alerts. It uses a radar-based system that can provide critical information/warnings such as Forward Collision Warning (FCW), Distance Warning (DW), Lane Change Assist (LCA), Blind Spot Detection (BSD) and Rear Collision Warning (RCW).

On the other hand, the vision system uses high-resolution cameras to provide Pedestrian Detection, Lane Detection, Traffic Sign Recognition and Lane Departure Warning.

Through intelligent image processing the system identifies road signs and obstacles, even in low-light conditions. Through the combination of radar and vision system, the two-wheeler encompasses a comprehensive safety system for two-wheeler users.

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