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.

Comments (0)

ADD COMMENT

Link Copied!

The UK government has opened applications for operators to run self-driving cars, allowing citizens to book autonomous taxi and bus-style services across Great Britain later this year.

The pilot scheme will allow technology firms to deploy autonomous vehicles on public roads to gather real-world performance evidence. These services will be subject to safety assessments and rigorous regulatory approval checks by the government, including verification of protections against cyber and security threats. Local transport authorities, such as Transport for London, must also provide local consent to ensure operations align with regional infrastructure priorities.

Learnings collected from these commercial pilots will guide the development of permanent self-driving vehicle regulations. This regulatory framework follows a formal government call for evidence that concluded in March. Data shows that human error currently contributes to 88 percent of collisions on UK roads, and the implementation of automated systems aims to improve overall road safety. Industry projections estimate that the British automated passenger services market could be worth up to GBP 3.7 billion annually by 2040.

Simon Lightwood, Roads and Buses Minister, said, “Self-driving vehicles represent a transformative opportunity for Britain, opening up independent travel for disabled people and older adults, while driving growth and creating high-skilled jobs across the UK. This pilot scheme brings that future closer, giving passengers the opportunity to experience self-driving travel first-hand while ensuring safety always comes first.”

Sarfraz Maredia, Global Head of Autonomous Mobility and Delivery, Uber, stated, “This is an exciting and important step toward launching autonomous vehicles in the UK. London has long been a pioneering city for Uber, where we’ve launched some of our biggest innovations and we can’t wait to give people in the capital the chance to experience autonomous rides this year.”

Ben Loewenstein, Head of Policy and Government Affairs for the UK and Europe, Waymo, added, “The UK is leading the way in enabling the safe deployment of pilot autonomous vehicle services. We hope to soon become part of London’s transport network and demonstrate the safety, accessibility and sustainability benefits of battery-electric autonomous vehicles through the government’s pilot scheme. We are working closely with the Department for Transport and Transport for London to ensure our operations align with their goals.”

Sarah Gates, VP of Global Affairs and Assurance, Wayve, noted, “The UK has all the ingredients to become a global leader in the deployment of self-driving vehicles and today’s launch of the automated passenger services scheme marks an important milestone. Wayve has been developing its technology in the UK for nearly a decade and we’re excited to bring our supervised passenger service to market here this year.”

Mike Hawes, Chief Executive, SMMT, commented, “Today is a significant milestone in the safe and responsible rollout of automated vehicles on British roads. For the first time, legislation will allow operators to offer passenger-carrying commercial services – such as robotaxis – to the general public. Government’s decision to bring forward this legislation has positioned Britain as a leading European market for automated vehicles and a frontrunner in physical AI investment, development and deployment.”

Comments (0)

ADD COMMENT

Link Copied!

Chinese technology company Hesai Group has secured a new design win from a top-tier European automotive manufacturer for its advanced driver-assistance systems (ADAS) solution.

The multi-year contract exceeds one million units and will cover more than 10 vehicle models across the manufacturer's joint venture brands in China.

The agreement follows Hesai's recently announced Level 3 autonomous driving program partnership with Mercedes-Benz, highlighting the company's full-stack in-house application-specific integrated circuit (ASIC) development and volume manufacturing capabilities.

The contract will be fulfilled using the Hesai ATX, a compact, long-range LiDAR sensor configured specifically for L2 ADAS architectures.

Since entering mass production in 2025, the ATX platform has logged over one million deliveries. The company reports a current order backlog exceeding six million units for the ATX platform. The sensor utilises proprietary addressable photon isolation technology to improve hazard detection timelines and vehicle active safety functions.

Hesai said it continues to expand its market share within the automotive sensor supply chain with secured design wins from around 40 automakers, spread over more than 160 vehicle models, to date.

The company said, according to data from the Yole Group, Hesai ranked first globally in long-range ADAS LiDAR shipments for the 2025 period, commanding a 43 percent share of the global market.

Comments (0)

ADD COMMENT

Link Copied!

Horse Powertrain, a leading supplier of powertrain solutions, has launched the V20 engine through its Aurobay Technologies division with production already underway at its Skovde, Sweden, manufacturing facility.

The V20 engine aims to assist automakers in meeting emission regulations for 2026 and 2027 with units destined for customers in Europe, the US and Asia. The 2.0-litre, 4-cylinder engine features a single architecture offered in two variants: a 400-volt plug-in hybrid and a 48-volt mild hybrid. The plug-in version provides a reduction in fuel consumption of seven per cent compared to the predecessor.

The platform design intends to reduce material costs. Hardware for the plug-in variant includes a crankshaft-mounted starter-generator, a mechanical water pump, and a re-routed cooling system. Additional updates include a multi-injection fuel system, an engine management system, and an air induction system.

Ingo Scholten, Managing Director, Aurobay Technologies Sweden and Deputy CTO of Horse Powertrain, said, “Designing one engine to meet three different regulatory regimes is harder than designing three separate engines. As the regulatory map is fragmenting, one engine that meets all three sets of rules delivers greater value to our customers, ensuring we can offer greater economies of scale. Pulling that off requires serious engineering. Further, the Skovde team also successfully changed production lines while keeping current production running.”

The Skovde plant integrated a final assembly line with the base assembly line to improve material flow. This transition occurred during ongoing operations. Output is scheduled to increase through 2026 and 2027 to meet demand.

Comments (0)

ADD COMMENT

Link Copied!

AEye, Inc. and MoveAWheeL have signed a Memorandum of Understanding to explore the integration of their sensing technologies for use in Advanced Driver Assistance Systems (ADAS) and autonomous driving applications.

The partnership aims to combine AEye’s lidar perception with MoveAWheeL’s road-surface sensing to assist vehicles in interpreting surroundings and road conditions.

The collaboration will evaluate the pairing of AEye’s Apollo LiDAR sensor with MoveAWheeL’s friction-coefficient prediction technology. Apollo is a 1550-nanometer LiDAR sensor capable of detecting objects at distances of up to one kilometre. MoveAWheeL’s sensor uses acoustic sensing to estimate the friction of road surfaces, providing data to inform decisions regarding acceleration, braking and stability control.

Matt Fisch, Chairman and CEO of AEye, said, “Physical AI depends on giving machines the ability to accurately perceive and understand the real world. Apollo was designed to deliver long-range, real-time 3D perception that helps systems see farther and react earlier in complex environments. By exploring the integration of Apollo with MoveAWheeL’s road-surface intelligence, we have the opportunity to create an even deeper understanding of the driving environment, particularly in the adverse conditions where advanced safety systems are needed most.”

Dr. Min-Hyun Kim, Founder and CEO, MoveAWheeL, said, “While LiDAR provides the ‘eyes’ for a vehicle to see obstacles, MoveAWheeL provides the ‘tactile sense’ to feel the road. By integrating our Physical AI with AEye’s long-range perception, we are creating a complete safety stack that remains robust even in the most treacherous weather conditions.”

Comments (0)

ADD COMMENT

Link Copied!