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 technology company Tsuyo Manufacturing has been granted two patents for electric vehicle motor designs, increasing its portfolio to 29 innovations.

The company claims it has supplied 300,000 powertrains to 25 manufacturers across the commercial vehicle, agriculture and industrial sectors.

The first patent covers a bridge design for synchronous reluctance motors. This architecture increases torque density and efficiency whilst reducing energy losses and the requirement for rare-earth materials. The second patent focuses on a five-phase permanent magnet motor using a dual inverter system. This technology allows the motor to switch between modes for startup and torque demands and maintains operation if a phase failure occurs.

These technologies were developed through research and collaboration with the Visvesvaraya National Institute of Technology, Nagpur. The company recently received approval from the Government of Karnataka for a manufacturing expansion to increase powertrain production.

Vijay Kumar, Founder and CEO, Tsuyo Manufacturing, said, "These patents mark a significant milestone and recognition in our mission to develop and promote Design-In-India technology for both domestic and global EV markets. At Tsuyo, we are not merely creating components; we are engineering a comprehensive design approach, crafting fundamental technology to drive sustainable and impactful innovation. Our goal is to offer a resilient powertrain system that addresses real-world performance challenges in electric mobility. Our commitment to deep-tech innovation, supported by a strong in-house R&D team and robust academic collaborations, enables us to challenge conventional construction and topology in hardware. This approach allows us to create niche, modular designs that are manufacturable and scalable, delivering solutions that enhance efficiency, reliability, and cost-effectiveness for OEMs. We take pride in being India's fastest research and engineering startup, consistently advancing our research from TRL1 to TRL9 levels. As India moves towards electrification, we are proud to contribute to the 'Design in India, for the world' vision while expanding our IP portfolio with numerous innovations in the pipeline."

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Skoda Auto Volkswagen India (SAVWIPL) has opened a new 33,000 sqft wing at its Technology Centre Pune (TCP) in Baner. The facility is designed to house 250 engineers, bringing the total engineering workforce to more than 450 across its Pune sites.

The expansion aims to increase capacity for vehicle development, platform engineering and software solutions. Staff at the Baner site will also focus on sustainable mobility and connected technologies. This centre acts as a hub for both domestic and international projects within the Volkswagen Group.

The Technology Centre Pune has previously managed the development of models for the Indian market, including the Volkswagen Taigun, the Skoda Kushaq and the Skoda Kylaq sub-4-meter SUV. The new wing is intended to improve localisation and speed up the adaptation of global platforms for local requirements.

Piyush Arora, Managing Director & CEO, Skoda Auto Volkswagen India, said, “The expansion of our R&D footprint in Pune marks another important milestone in our India journey. With the new Baner wing, we are creating additional capacity in a dynamic urban location while building on the strong foundation of our Technology Centre Pune in Chakan. As part of its long-term roadmap, TCP is set to expand its competencies in digitalization, automation, and advanced safety technologies. This combined engineering ecosystem allows us to deliver global-quality solutions with higher speed, greater localisation, and a sharper understanding of customer requirements in India and the world. It further underlines India’s position as a strategic development and competency hub for the Volkswagen Group.”

The company started the Technology Centre Pune in 2019 at its Chakan plant. This latest expansion in Baner is part of a roadmap to increase competencies in automation and safety technologies while maintaining the Group's standards for the subcontinent and export markets.

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Tata Motors, one of the leading commercial vehicle manufacturers, has reached a new innovation peak, filing 144 patent applications in FY2025-26, which it claims is the highest annual count ever recorded by its commercial vehicles (CV) division.

The surge in intellectual property activity reflects the company’s shift toward ‘future-ready’ technologies. Beyond traditional mechanical engineering, the new filings focus heavily on sustainable mobility, including electric vehicle (EV) architectures and hydrogen-based internal combustion engines (H2-ICE).

In addition to the record-breaking patent applications, the company expanded its broader IP footprint, which includes 21 design applications and 35 copyright applications; secured 15 new patent grants during the year and now holds a total of over 650 granted patents.

The engineering teams have focused their innovation efforts on four core pillars: Vehicle Safety – advanced driver assistance and structural integrity, Reliability – enhancing the lifecycle of heavy-duty components, Total Cost of Ownership (TCO) – optimising fuel/energy efficiency to improve profitability for fleet operators. And Occupant Comfort – ergonomic and cabin climate innovations for long-haul drivers.

A significant portion of the recent innovation is tied to Tata Motors' leadership in the hydrogen ecosystem. In February 2026, the company signed an MoU with the V.O. Chidambaranar Port Authority to deploy 40 hydrogen-powered heavy-duty trucks (Tata Prima 55-tonne).  

The patent filings support a multi-fuel strategy, encompassing Battery Electric Vehicles (BEVs), Hydrogen ICE, and Hydrogen Fuel Cell technologies, as confirmed by Chairman N Chandrasekaran earlier this month.

Aniruddha Kulkarni, Vice-President and Head of Engineering, Tata Motors, said, “Innovation is at the heart of everything we do at Tata Motors Commercial Vehicles. The record number of patent applications filed in FY26 is a testament to the passion, creativity, and technical excellence of our engineering teams. It reinforces our vision of establishing Tata Motors as a global benchmark for innovation in commercial mobility. As we look ahead, we remain committed to harnessing our innovation capabilities to serve the long-term interests of our customers, communities, and the nation.”

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MathWorks has announced Release 2026a (R2026a) of MATLAB and Simulink, headlined by the introduction of AI-powered ‘copilots’ designed to streamline embedded systems development and software verification.

The release focuses on ‘grounded AI’ – integrating generative AI directly into existing engineering environments to improve productivity without compromising the rigour and traceability required for complex systems.

MathWorks is expanding its AI ecosystem by embedding assistants into specific development stages. The Simulink Copilot is for model-based design, it provides context-aware guidance by generating model explanations, answering behaviour-related questions and helping users navigate complex subsystems.

Polyspace Copilot assists in interpreting static analysis results. It helps engineers understand coding vulnerabilities and suggests remedies based on Polyspace analysis findings.

MATLAB Copilot now integrated into MATLAB Test to help engineers generate starter tests and equivalence tests from command history.

Beyond AI assistants, R2026a introduces new products and workflows for software quality:

Polyspace as You Code: A new tool for C and C++ developers that identifies defects and security vulnerabilities in real-time as code is written.

Polyspace Enhancements: Includes a new unified desktop application and ‘software-sanitising’ capabilities in Polyspace Test for dynamic analysis of runtime errors.

Simulink FMU Builder: A new standalone product that creates Functional Mockup Units (FMUs) to facilitate model exchange and integration across different simulation environments.

Avinash Nehemiah, Head of Product Management, MathWorks, said, “In engineering design and software verification, productivity improvements cannot come at the expense of rigor, traceability, or trust. MathWorks is committed to delivering grounded AI tools that help teams move faster while preserving the discipline required to develop complex engineered systems.”

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