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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Horse Powertrain, a global player in low-emission and innovative powertrain systems, has unveiled its first production-ready V8 engine, the HORSE W40. Developed for high-performance hybrid vehicle platforms, the 4.0-litre eight-cylinder unit ranks among the market's most power-dense V8 offerings, weighing just 200 kg while producing over 500 kW and 800 Nm. That blend of strong low-end torque and high peak power makes it suited to sports cars, pick-up trucks and off-road vehicles alike.

The engine is laid out longitudinally with twin top-mounted turbochargers in a hot-V configuration, and it borrows advanced direct fuel injection, extensive lightweighting and a shortened turbo intake path from across the company's portfolio to achieve its power and torque density. Complementing it is the HORSE 8LDCT, an eight-speed transmission with a sportscar-grade wet dual clutch that delivers a pre-fill time below 50 ms and shift response under 20 ms, plus a silicon carbide control system, power module, variable-displacement mechanical pump and support for up to 1,050 Nm.

Both components will make their world debut as an integrated set in Lotus's upcoming Type 135 supercar, the brand's first entry into the category. The pairing is intended to cement the W40's position as the leading hybrid engine for top-end vehicles, combining high output with hybrid-ready efficiency. Horse Powertrain says the integrated package demonstrates how its portfolio technologies can be brought together to serve demanding performance applications.

Matias Giannini, CEO, Horse Powertrain, said, “The HORSE W40 marks another landmark achievement for Horse Powertrain’s engineering teams, with our world-class technology powering one of the most power-dense V8s in automotive history. This hybrid-first engine has been built with our company’s full-powertrain perspective and expertise, designed for integration from the outset with our landmark HORSE 8LDCT transmission. In powering the Lotus Type 135, Horse Powertrain is both advancing the state of the art of automotive engineering while making a historic contribution to the world-renowned Lotus brand.”

Feng Qingfeng, CEO, Lotus, said, “We are excited to partner with Horse Powertrain to bring its advanced V8 engine and hybrid transmission technology to the upcoming Lotus Type 135. The HORSE W40 V8 engine and 8LDCT hybrid transmission represent significant advances in powertrain engineering, combining exceptional power and torque density with a highly integrated design. By bringing these technologies together with Lotus’ expertise in lightweight engineering and chassis dynamics, we aim to deliver a new generation of supercar performance, combining outstanding power, efficiency and the precise, engaging driving experience that defines Lotus.”

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US-headquartered Ten-Nine Technologies has entered a market development partnership with Tokyo-based Rune Nordgaard Consulting (RNC) to expand the evaluation and commercialisation of its 'TENIX' battery additive across Japan's battery value chain.

Headquartered in Tulsa, Oklahoma, Ten-Nine Technologies is said to have developed proprietary nano-scale materials that improve battery performance, longevity and stability across lithium-ion chemistries. The company claims its flagship technology, christened TENIX, is a cathode additive engineered to extend cycle life, improve thermal performance and unlock more value from every cell.

TENIX is a powder additive blended into cathode active materials during manufacturing at 0.5 to 2 percent of cathode weight without requiring equipment modifications or battery redesigns. In third-party evaluations across nickel-manganese-cobalt (NMC) and lithium-manganese-oxide (LMO) chemistries, the additive increased charge-discharge cycles by over 75 percent, extending electric vehicle battery lifespans from 150,000 to over 265,000 miles while reducing cost per kilowatt-hour by approximately 40 percent, lowering resistance by 10 percent and decreasing lifetime heat output by around 40 percent.

Under the agreement, RNC will act as Ten-Nine's representative in Japan, facilitating engagement with automotive original equipment manufacturers, battery makers, cathode producers, trading houses and research institutions.

Since May 2026, RNC has introduced TENIX to battery manufacturers, automotive firms, and cathode materials producers in Japan to support technical evaluations and customer qualification processes.

Paige Johnson, CEO, Ten-Nine Technologies, said, “Japan has played a foundational role in the development of the global lithium-ion battery industry. RNC’s deep understanding of the Japanese battery ecosystem and extensive industry network make them an ideal partner as we continue expanding our global presence.”

Rune Nordgaard, Founder, Rune Nordgaard Consulting, said, “Japan is one of the world’s most important battery markets, but success here requires trust, technical understanding, and strong local follow-up. TENIX has demonstrated excellent performance in NMC and LMO cathode chemistries, with strong potential for all-solid-state batteries as well, and I believe it will be of real interest to battery and battery-related companies across Japan. We’re pleased to support Ten-Nine, whose professionalism, technical rigour, and commitment to customers give us confidence in introducing TENIX to potential partners in Japan.

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German luxury carmaker Audi has detailed the battery architecture and bidirectional charging capabilities of the Audi A2 e-tron, which is available to order in three battery configurations of 52, 61 and 84 kWh.

The EV features Vehicle-to-Load (V2L) functionality to power devices and Vehicle-to-Home (V2H) capability to supply electricity to households when paired with a DC wallbox, with Vehicle-to-Grid (V2G) functionality planned to feed energy into the power grid in the future.

The 52 kWh and 61 kWh variants use lithium iron phosphate (LFP) batteries arranged in a cell-to-pack layout, while the 84 kWh variant uses a nickel-manganese-cobalt battery. Depending on the configuration, direct current charging powers range between 100 and 183 kW, charging the battery from 10 to 80 per cent in 24 minutes for the 52 kWh version, 26 minutes for the 61 kWh version, and 29 minutes for the 84 kWh versions.

The vehicle incorporates an OCDC 2.0 unit that integrates the on-board charger and DC/DC converter, utilising metal-oxide-semiconductor field-effect transistors (MOSFETs) and alternating current output management software. A thermal management system regulates battery temperature, current flow, and state of charge during charging and discharging cycles, while a battery management controller employs an algorithm to track state of charge, ageing, and range calculations across the LFP cells.

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Enmovil Solutions has formed a partnership with Tangentia to provide supply chain orchestration software to manufacturing and automotive enterprises in Canada. The agreement was formalised during the Team Canada Trade Mission to India in October 2026, led by Canada's Minister of International Trade, Maninder Sidhu, which resulted in 34 agreements valued at nearly CAD 300 million.

Under the terms of the agreement, the companies will combine Enmovil's CADDIE supply chain platform with Tangentia's integration and Agentic AI systems. Tangentia will manage go-to-market operations, deployment and customer support in Canada, targeting manufacturers, automotive original equipment manufacturers, electric vehicle and battery producers, defence contractors and supplier networks. Enmovil's platform manages demand, inventory, production, and logistics planning for clients including Maruti Suzuki India, Mahindra & Mahindra, TVS Motor Co, Daimler, Nestle, Hero MotoCorp, Indus Towers and Ashok Leyland.

Ravi Bulusu, Co-Founder and CEO, Enmovil, said, “Canada is a natural next step in Enmovil’s global expansion. Its manufacturing and automotive sectors run on complex, tightly connected supply chains, where faster and better-coordinated decisions translate directly into cost and service outcomes. By combining CADDIE, Industry’s leading Agentic supply chain decisioning and orchestration platform, with Tangentia’s solutions and local expertise, we can offer Canadian enterprises a joint solution that helps them make faster, better-informed supply chain decisions. We look forward to working with Tangentia to bring this to more businesses in Canada.”

Vijay Thomas, CEO, Tangentia, said, “Canadian manufacturers, Retailers and Distributors are under growing pressure to build supply chains that are more resilient and responsive. CADDIE, Enmovil’s supply chain decisioning and orchestration platform, has proven itself at scale with some of the largest manufacturing and automotive companies in India, and it complements Tangentia’s strengths in Supply Chain, EDI, integration and Agentic AI. Together, we can offer our customers a combined solution and a practical path to AI-driven supply chain decisions. This partnership is also a strong example of the growing technology ties between Canada and India.”

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