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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Hyundai Motor India (HMIL) has announced that its popular SUV the Creta has surpassed 200,000 units sales in CY2025.

This figure represents the highest annual sales volume for the vehicle since its introduction. This translates to an average of 550 units sold per day, maintaining the model's position in the mid-size SUV segment with a market share exceeding 34 percent.

Marking a decade on Indian roads, the SUV achieved a compound annual growth rate (CAGR) of over 9 percent between 2016 and 2025. Hyundai Motor India stated that its internal data reveals a shift in buyer demographics, with first-time buyers increasing from 13 percent in 2020 to 32 percent in 2025. Product trends within the range show that variants equipped with a sunroof accounted for over 70 percent of sales in 2025, while diesel powertrains maintained a 44 percent share of total volume.

At present, the Creta can be had with a 1.5-litre petrol, 1.5-litre diesel and 1.5-litre turbo petrol engines, as well as an electric (EV) variant. Transmission choices include manual, IVT, automatic and DCT. The model remains the highest-selling mid-size SUV in the country on a cumulative basis for the period between 2020 and 2025.

Tarun Garg, Managing Director & CEO designate, Hyundai Motor India, said “Hyundai Creta journey in India is nothing short of extraordinary and achieving highest-ever annual sales of more than 2 lakhs units is a proud and defining moment for all of us at Hyundai. It is also the highest selling SUV of our country on a cumulative basis from 2020-2025. Infact, over the past 10 years of its journey in India, Creta’s customer base has grown manifold, transforming it from a capable SUV into a trusted companion for every journey. The brand’s momentum also reflects in the rise of first-time buyers - from 13 percent in 2020 to an impressive 32 percent in 2025. Aspirations of Creta customers have also evolved over the years, with sunroof-equipped variants contributing more than 70 percent of Creta’s sales in 2025. In addition, the diesel powertrain contributes a strong 44 percent share to Creta sales. We are deeply grateful to our customers and dealer partners for making Creta a symbol of Hyundai’s trust, innovation and commitment.”

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MapmyIndia Mappls has expanded its Mappls App by integrating multimodal public transport routes. The update allows users to access information for metro, rail and bus services within the application.

The feature enables the 40 million users of the platform to view stations, stops and interchange options. The service is currently available in cities including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata, among others. The update is live on iOS and web platforms, with an Android release scheduled to follow.

The public transport data joins existing app features such as turn-by-turn navigation, traffic updates and safety alerts. By combining private and public transport data, the company aims to assist in journey planning and support mass transit adoption to manage urban congestion.

As an indigenous platform, MapmyIndia aligns its mapping data with government guidelines regarding international borders and sensitive establishments. The government sector currently accounts for 20 percent of the company's gross revenue.

Rakesh Verma, Co-Founder, Chairman & Managing Director, MapmyIndia Mappls, said, “The launch of multimodal public transport routes on the Mappls App is a direct outcome of listening to our users. We want the Mappls App to be more inclusive and accessible for every citizen. We are pleased to begin rolling out this feature across select cities and will continue expanding coverage to make public transport more convenient for millions of Indians. As a fully indigenous platform built in India for India, Mappls remains committed to supporting sustainable urban mobility by seamlessly integrating public transport into everyday navigation.”

The company plans to expand the coverage of this feature to additional cities to further integrate public transport into its navigation ecosystem.

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Israel-headquartered REE Automotive has signed a non-binding Memorandum of Understanding (MOU) with Cascadia Motion, a subsidiary of BorgWarner Inc., to develop and manufacture a next-generation electric drive unit (EDU).

The partnership focuses on integrating Cascadia Motion’s iM-125 motor and inverter with REEcorner technology. The resulting EDU is intended for global original equipment manufacturer (OEM) electrification programmes, providing a modular solution for software-defined vehicles (SDVs).

The proposed EDU is designed to support ASIL-D functional safety standards and features a zonal architecture. This system uses centralised control units to replace legacy domain systems, reducing wiring and enabling over-the-air (OTA) updates.

Technical Specifications (at Gearbox Output):

• Motor Type: Permanent Magnet
• Peak Torque (30s): 3000 Nm
• Peak Power: 100 kW
• Gear Ratio: 19.17
• Weight: 54 kg
• Cooling: Water-Glycol

REE plans to grant Cascadia Motion access to its existing assembly lines, tooling and supplier networks to facilitate production. The companies also intend to evaluate market demand for complete SDV solutions, including standalone REEcorner units and chassis control software.

The collaboration occurs as industry research suggests the global EDU market will grow at a compound annual growth rate (CAGR) of 9 percent between 2025 and 2035. The move is aimed at helping OEMs reduce development cycles for electric vehicles through ready-to-integrate hardware.

Joseph McHenry, General Manager, BorgWarner Portland, said, “Integrating Cascadia Motion’s iM 125 drive unit with REEcorner technology bolsters our portfolio of off-the-shelf electric drive solutions, providing our customers with even more flexibility in their electrification programs. This collaboration reflects our commitment to delivering innovative, ready-to-integrate drive units that help OEMs reduce development time and streamline vehicle launch.”

Daniel Barel, CEO and Co-Founder, REE Automotive, said, “We believe that this MoU with Cascadia Motions represents a natural progression of our three-year collaboration and reinforces our mission to accelerate the industry’s transition to software-defined, by-wire mobility. We believe this collaboration positions us to meet global demand at scale while laying the groundwork for next-generation, fully by-wire solutions.”

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Bengaluru-based electric powertrain start-up Entuple E-Mobility has raised INR 130 million in a funding round led by Varanium Capital, which also participation from existing investors Blue Ashva Capital, alongside high-net-worth individuals and family offices, including Mohit Oswal, founder of Roop Automotives.

The start-up operates a 25,000 sqft manufacturing plant in Bengaluru, where it produces hub and mid-motor powertrains for two- and three-wheelers. Entuple develops its motors, controllers and firmware in-house without external licensing.

The funding will be used to advance the company's technology stack and expand into new vehicle segments. Key areas of focus include:

• High-Voltage Systems: Development of motors for four-wheelers, buses and trucks.
• Power Electronics: Research and development into new-generation intelligent motor controllers.
• Commercial Vehicles: Engineering powertrains specifically for the heavy-duty commercial segment.

By deepening its indigenous technology, Entuple aims to provide powertrain solutions for original equipment manufacturers (OEMs) in India and international markets.

Rakesh Mishra, Founder and CEO, Entuple E-Mobility, said, “This round enables us to double down on high-voltage powertrain platforms for four-wheelers, passenger vehicles, and commercial vehicles while continuing to strengthen our core IP in motors, power electronics, and controls. We are excited to partner with Varanium Capital and our existing investors as we scale from proven 2W/3W solutions to becoming a key technology enabler for the next generation of EV programs in India and beyond.”

Satya Bansal, Founder & CEO, Blue Ashva Capital, said, “We reinforce our confidence by further participating in the current fund raise. In a market often relying on assembled solutions, Entuple differentiates itself by engineering superior technology fully designed and developed in India. This is one of the best design and engineering teams in the motor and controller space in the country, which was largely dominated by imported or assembled components in India so far.”

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