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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IVECO BUS Academy is incorporating virtual reality (VR) into its training curriculum to support the maintenance and operation of electric vehicles across Europe. The initiative follows a year in which the academy trained 6,100 people across 800 sessions in 2025. This integration aims to address the technical skills required for high-voltage vehicle systems while ensuring safety and operational efficiency.

The use of VR technology allows trainees to perform maintenance procedures in a simulated environment, eliminating physical risks associated with incorrect handling of electrical components. The immersive system enables repetitive practice of technical operations and reproduces complex scenarios that are difficult to simulate in conventional training environments. By utilising these tools, the academy seeks to improve knowledge retention and the long-term proficiency of technical teams.

The academy provides training tailored to the requirements of transport operators, updating its content to reflect changes in energy sources, vehicle technology and industry regulations. These programmes are delivered both at the academy's facilities and on-site at customer premises. The deployment of VR is intended to reduce downtime for vehicle fleets by improving the diagnostic capabilities of service personnel.

Teresa Magno, IVECO BUS Academy, said, “At IVECO BUS Academy, we know that delivering sustainable mobility extends far beyond the product itself. A vehicle is only truly efficient when it is supported by the right services. Fleet availability also relies on the expertise of skilled teams. As technologies evolve, so do the competencies required for diagnostics. With these new educational tools, IVECO BUS Academy confirms its ambition to provide comprehensive solutions, where training becomes a real driver of performance, safety and customer satisfaction.”

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IndiGo Ventures has completed a INR 100 million strategic equity investment in Sarla Aviation, marking a formal entry into the Indian electric vertical take-off and landing (eVTOL) sector.

The funding was part of a recent round led by Accel and Nikhil Kamath. The partnership is intended to establish an infrastructure for air taxi operations across India, specifically targeting transport corridors between zero and 300 kilometres.

Sarla Aviation is a startup focusing on the development of hybrid-electric aircraft platforms. The firm operates a private eVTOL demonstrator and employs an engineering team with previous experience at international firms including Lilium, Joby and Volocopter.

By utilising electric flight technology, the company aims to provide transport services for airport transfers, inter-city commutes and emergency medical runs at lower costs than traditional helicopter services.

The collaboration pairs Sarla's hardware development with the operational infrastructure of IndiGo, India's largest airline. At present, IndiGo operates over 2,000 daily flights across 85 airports and maintains a national network of maintenance, repair and overhaul (MRO) facilities. This investment aligns with global trends where major carriers, such as United Airlines and Delta Air Lines, have backed eVTOL manufacturers to secure future urban air mobility solutions.

Beyond passenger transport, the investment is expected to influence the domestic aerospace supply chain, including the production of composites, avionics and battery systems. Potential routes identified for future operations include Bengaluru Airport to Electronic City and Gurugram to Noida, which could see transit times reduced from over 90 minutes to approximately 15 minutes.

Adrian Schmidt, Co-Founder & CEO, Sarla Aviation, said, “IndiGo’s investment marks a turning point — not just for Sarla, but for the future of how India moves. For decades, Indians have accepted that distance means delay, that geography is a constraint you live with. We believe that era is ending. Having IndiGo — the airline that made flying accessible to hundreds of millions of Indians — stand behind this vision gives it a weight and credibility that we could not have built alone. India has always dreamed big. Now we have the partners to match the dream.”

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German technology company Robert Bosch has announced its 2030 strategy, prioritising technological leadership in automation, electrification and artificial intelligence (AI) to navigate a challenging global economic environment.

Despite geopolitical tensions, the group reported 2025 sales revenue of EUR 91 billion, a slight increase from the previous year. For 2026, the company expects sales growth of 2–5 percent and an improved EBIT margin from operations between 4–6 percent.

The 2025 financial results were impacted by structural and personnel adjustments, resulting in provisions of EUR 2.7 billion. These measures reduced the EBIT margin from operations to 2 percent, down from 3.5 percent in 2024. However, the group maintained a high level of investment, dedicating EUR 12 billion to research, development and capital expenditure. Bosch remains a prolific patent applicant, registering approximately 6,300 patents in 2025.

A primary focus for the company is the advancement of sensor technology and automotive software. The global market for sensors is projected to exceed USD 440 billion by 2031, and Bosch is positioning its BMI5 sensor platform for applications in robotics and automated driving.

In the mobility sector, the firm secured orders worth EUR 10 billion in 2025 for driver assistance solutions and central vehicle computers. The group also expects to deliver more than 7 million components for electric vehicles this year.

The company is diversifying its reach through regional partnerships, including a joint venture with Tata AutoComp Systems in India to manufacture electric motors and axles. In the consumer goods sector, artificial intelligence is being integrated into products such as home appliances and professional power tools to drive sales.

To support future investments and improve capital market access, Bosch will begin publishing interim consolidated financial statements. The group's equity ratio remains high at 41.6 percent, with a positive free cash flow of EUR 300 million recorded in 2025. Total headcount saw a slight reduction of 1 percent during the year, ending with 412,774 associates worldwide.

Stefan Hartung, Chairman of the Board of Management of Robert Bosch, said, “Bosch can deliver the future – even under unfavourable conditions. 2026 will be a year of progress. As a global technology leader, we are committed to shaping the trends of automation, digitalization, electrification, and artificial intelligence, as this also paves the way for profitable growth in our business. An important prerequisite for this are the cost-cutting effects of the structural measures we have already initiated and innovations in all business areas.”

Markus Forschner, Member of the Board of Management and Chief Financial Officer, Robert Bosch, said, “Competitiveness is the foundation for profitable growth – it secures our investments for the future. This strengthens our resilience in the face of upcoming challenges and at the same time boosts our investment capacity for the future.”

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Toyoda Gosei Co., Ltd. recently received independent verification from third-party certification body SGS Japan Inc. confirming that it has reached capability Level 2 under the Automotive SPICE international standards, which evaluate the quality of automotive software development. This achievement reflects a major step forward in the company’s software engineering practices.

As next-generation software-defined vehicles become more common, where performance increasingly depends on digital systems, developing software that enhances product value has grown essential. Toyoda Gosei has responded by integrating electronic components with its traditional rubber and plastic products. The company has therefore established structured processes and strengthened its software development systems, which serve as the foundation for creating advanced products.

Specifically, within an interior lighting project, the company has achieved capability Level 2 in Automotive SPICE international assessment standards, confirmed by a third-party organisation that the company’s software development processes demonstrate systematic execution and proper management, achieving a uniform level of maturity. Moving forward, Toyoda Gosei aims to continue producing higher value products that contribute to more comfortable mobility spaces.

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